One name that's trending very close to triggering a near-term breakout trade is Sandstorm Gold (SAND), which is a growth focused resource based company that seeks to complete gold purchase agreements with gold mining companies that have advanced stage development projects or operating mines. This stock has been ripping to the upside so far in 2012, with shares up a whopping 65%.
If you look at the chart for Sandstorm Gold, you'll notice that this stock has been uptrending very strong for the last six months, with shares soaring from a low of $7.41 to a recent high of $15.43 a share. During that uptrend, shares of SAND have been consistently making higher lows and higher highs, which is bullish technical price action. Shares of SAND have recently found buying interest at around $13.30 a share and it's now moving within range of triggering a near-term breakout trade.
Market players should now look for long-biased trades in SAND once it manages to break out above some near-term overhead resistance levels at $14.11 to $15.43 a share with volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 563,297 shares. If that breakout triggers soon, then SAND will enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $18 to north of $20 a share.One can look to buy SAND off any weakness to anticipate that breakout and simply use a stop that sits just below some near-term support at $13.33 to $13 a share. Traders can also buy off strength once SAND clears $14.11 to $15.43 a share with high volume and then use a stop just below $14 to $13.50 a share.
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