Another stock thats quickly moving within range of triggering a major breakout trade is BroadSoft (BSFT - Get Report), a provider of software that enables fixed-line, mobile and cable service providers to deliver hosted, unified communications and other voice and multimedia services over their Internet protocol. This stock has been under pressure from the sellers so far in 2013, with shares off sharply by 27%.
If you take a look at the chart for BroadSoft, youll notice that this stock is spiking sharply higher here right off some near-term support at $25 a share. This spike is quickly pushing shares of BSFT within range of triggering a major breakout trade above some near-term overhead resistance levels. Sitting just above those resistance levels is a monster gap that shares of BSFT could easily soar higher into if that breakout triggers soon.
Traders should now look for long-biased trades in BSFT if it manages to break out above some near-term overhead resistance levels at $26.85 to $26.97 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 497,089 shares. If that breakout triggers soon, then BSFT will set up to re-fill some of its previous gap down zone from November that started just below $34 a share.
Traders can look to buy BSFT off any weakness to anticipate that breakout and simply use a stop that sits right around some near-term support levels at $25 or at $24 a share. One can also buy BSFT off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.