Traders can look to buy NTE off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $6.77 a share, or right below more near-term support at $6.55 a share. One can also buy NTE off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Keep in mind that NTE is set to report earnings on Monday, August 5, 2013 before the market opens. Look to play this breakout ahead of the quarter for a decent run into that gap, and then after the quarter for a much bigger move if the stock reacts positively to the numbers.
Another stock that's starting to trend within range of triggering a near-term breakout trade is
), which is a provider of email and cross-channel marketing solutions that enable companies to engage in relationship-based marketing across the interactive channels. This stock has been on fire so far in 2013, with shares up a whopping 141%.
If you look at the chart for Responsys, you'll notice that this stock has been consolidating and trending sideways for the last two months, with shares moving between $12.50 on the downside and $15.10 on the upside. Shares of MKTG have just started to bounce sharply higher off some near-term support at $13.31 a share with decent volume. That move is quickly pushing shares of MKTG within range of triggering a breakout trade above the upper-end of its sideways trading chart pattern.
Traders should now look for long-biased trades in MKTG if it manages to break out above some near-term overhead resistance levels at $14.56 to its 52-week high at $15.10 a share volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 360,843 shares. If that breakout triggers soon, then MKTG will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $17 to its all-time high of $18.19 a share. Any high-volume move above $18.19 will then give MKTG a chance to tag or trend north of $20 a share.