With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.
One name that's trending very close to triggering a major breakout trade is Crocs (CROX - Get Report). This company is engaged in the design, development, manufacturing, marketing and distribution of consumer products, mainly casual & athletic shoes & shoe charms, from specialty resins referred to as Croslite. This stock has been under control of the sellers for the last six months, with shares off by 23%.If you take a look at the chart for Crocs, you'll notice that this stock gapped down in late October from around $16.60 to a low of $12.61 a share with huge downside volume. Following that move, shares of CROX went on to make a low of $12 a share before rebounding sharply to its current price of $13.80 a share. That rebound has now pushed CROX within range of triggering a major breakout trade back above its gap down day high at $14.04 a share. Traders should now look for long-biased trades in CROX once it manages to break out above its gap down day high of $14.04 a share with high volume. Look for a sustained move or close above $14.04 a share with volume that hits near or above its three-month average volume of 276,850 shares. If that breakout triggers soon, then CORX will set up to re-fill some of that gap down zone that started at $16.60 a share. Traders can look to buy CROX off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $13 a share. One could also just buy CROX off strength once it takes out $14.04 a share with volume and then use a stop that sits near $13.50 a share. Inteliquent Another stock that's just starting to flirt with a major breakout trade is Inteliquent (IQNT - Get Report), which is a full-scale network solutions provider, offering intelligent networking to solve challenging interconnection and interoperability issues on a global scale. This stock has been destroyed by the sellers so far in 2012, with shares off by a whopping 79%.