Another stock that's trending within range of triggering a near-term breakout trade is Google (GOOG), which has been in play with the bulls so far in 2013, with shares up 13.5%.
If you take a look at the chart for Google, you'll notice that this stock has been uptrending strong for the last four months, with shares soaring higher from its low $636 to its recent high of $808.97 a share. During that uptrend, shares of GOOG have mostly been making higher lows and higher highs, which is bullish technical price action. Shares of GOOG have recently pulled back to $784.40 a share and it's now quickly moving within range of triggering a near-term breakout trade.
Market players should now look for long-biased trades in GOOG if it manages to break out above some near-term overhead resistance levels at $806.99 to $808.41 a share and then once it takes out its 52-week high of $808.97 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 volume of 2.34 million shares. If that breakout triggers soon, then GOOG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $820 to $830 a share or higher.Traders can look to buy GOOG off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $790 a share. One could also buy off strength once GOOG clears those breakout levels with volume and then simply use a stop that sits a few percentage points below your entry point.
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