Dycom Industries Pops, Nears Key Breakout Level

Shares of Dycom Industries

are trading higher on the session by 4.90%, trading at $18.41. The stock has been moving largely higher over the past seven weeks after they consolidated around the $12.50 level. Dycom Industries is now trading just under its late-August high of $18.85; if it can break above and hold the level, the stock could see an influx of buy volume in the form of a break higher. Given the wide and sweeping consolidating pattern shares have been in since December 2010, a break out now could be huge in every since of the word. A potential short-term pop to $20.50 would be likely whereas a long-term price target of $30 would not be out of the question. Traders can play a short-term break out by buying shares here and having a stop loss level below the 20-day moving average. Options trader can play Dycom Industries by buying the March 2012 $20/25 call spread for a net debit of $1.45. Note that Dycom Industries has 4.89% short interest. Dycom Industries, Inc. is a provider of specialty contracting services. These services are provided throughout the United States and include engineering, construction, maintenance and installation services to telecommunications providers, underground facility locating services to various utilities, including telecommunications providers, and other construction and maintenance services to electric and gas utilities and others.