The S&P 500 has essentially stalled over the last month. The Nasdaq and Dow Jones Industrials haven’t faired any better.

However, there does seem to be signs that the market is preparing for a break to the upside. For the S&P, the 2120 area is the mark for investors and traders to watch.

Some stocks are already breaking higher. Recognizing stocks at their initial breakout points can allow investors and traders to get a head start on potential gains.

One stock that looks to have already broken higher yesterday is Intercept.

The company: Intercept Pharmaceuticals, Inc.

Ticker Symbol: ICPT

Sector: Healthcare

Industry: Biotechnology

Intercept Pharmaceuticals is a development stage biopharmaceutical company that focuses on the discovery, development, and commercialization of novel therapeutics to treat chronic liver and intestinal diseases utilizing its proprietary bile acid chemistry.

Related:Amgen’s Decline Could Be A Good Thing

The company primarily develops obeticholic acid (OCA), a bile acid analog that completed Phase III clinical trial for the treatment of primary biliary cirrhosis; is in Phase III clinical trial for the treatment of nonalcoholic steatohepatitis; is in Phase 2 clinical trial for primary sclerosing cholangitis; and is in Phase I clinical trial for the treatment of biliary atresia.

Review the 1-year chart of Intercept with the added notations:

Intercept suffered a massive decline from its August 2014 peak up until its December 2014 low. During that slide the stock lost more than half of its value.

Then Intercept started just as strong of a rally, but unfortunately that rally has repeatedly stalled under the $300 level.

While stuck under $300, Intercept formed a triangle price pattern. The great thing about consolidation patterns, such as triangles, is that they have to break one way or another, eventually.

As can be seen on the chart, Intercept broke out to the upside, and should be headed higher overall.

The stock closed yesterday at $293.51/share.

Related:Regeneron Bounces Higher Off Support

No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key.