One name that's trending very close to triggering a near-term breakout trade is Optimer Pharmaceuticals (OPTR), which is a biopharmaceutical company focused on discovering, developing and commercializing anti-infective products. This stock is off to a hot start in 2013, with shares up 16.6%.
If you take a look at the chart for Optimer Pharmaceuticals, you'll notice that this stock has recently moved back above its 50-day moving average of $9.85 a share and it's been uptrending for the last few weeks. During that uptrend, shares of OPTR have been consistently making higher lows and higher highs, which is bullish technical price action. That move is quickly pushing shares of OPTR within range of triggering a near-term breakout trade.
Traders should now look for long-biased trades in OPTR if it manages to break out above some near-term overhead resistance levels at $10.79 to $10.93 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 520,582 shares. If that breakout triggers soon, then OPTR will set up to re-test or possibly take out its next major overhead resistance levels at $11.74 a share to its 200-day moving average at $12.80 a share.Traders can look to buy OPTR off any weakness to anticipate that breakout and simply use a stop that sits right around its 50-day moving average of $9.85 a share. One could also buy off strength once OPTR takes out those breakout levels with volume and then simply use a stop that sits near $$10.40 to $10.30 a share.