Shares of department stores operator Target (TGT) - Get Report are trending notably higher Wednesday morning, after the company reported strong earnings driven by a sharp spike in online orders, and after the company said it would remodel around 100 stores and double the number of its small-format store locations.

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The company reported earnings of $1.23 per share, which beat Wall Street estimates of $1.19 per share, and revenue hit $16.43 billion, which also topped estimates of $16.30 billion. Target's same-store sales came in at 1.3%, which was better than estimates of 0.7%, and the company forecasted earnings growth for the full year of between $4.34 and $4.54 a share, vs. Wall Street estimates of $4.39 a share.

Investors seem to be most excited about Target's comparable online sales, which increased by 32% as the company battles it out with fierce competition from the likes of Amazon.com Inc. (AMZN) - Get Report and Walmart Stores Inc. (WMT) - Get Report .

At last check around noon, TGT was spiking sharply to the upside by 3.2% to $56.10 on heavy volume. Volume so far in Wednesday's trading session has already eclipsed 14 million shares, which is well above its three-month average action of 7.68 million shares.

This high-volume spike to the upside is now quickly pushing shares of Target within range of triggering a major breakout trade above some key overhead resistance levels. Considering the strong fundamental report Thursday morning, let's turn to the chart and see where that trade will trigger for bullish investors on Target.

If you take a look at the chart for TGT, you'll notice that this stock was trending up Thursday morning right above its 50-day moving average of $53.66 a share and back above its 20-day moving average of $55.60 a share with expanding volume. This move is coming after shares of Target were uptrending heading into the quarter, with the stock moving higher off its recent low of $48.02 a share to its high of $58.55 a share.

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The high-volume trend on Wednesday back above its 20-day moving average is now quickly pushing TGT within range of triggering a major breakout trade. That trade will trigger if shares of Target manage to break out above some key overhead resistance levels at $58.55 to its 200-day moving average of $59.85 a share with strong volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 7.68 million shares.

If that breakout develops soon, this stock will set up to re-fill some of its previous gap-down-day zone from March that started at $65.62 a share. Any high-volume sustained move into that gap should easily lead to shares of Target filling that entire gap, if not trading even higher back toward $70 a share.

Traders can simply stop out of this trade if TGT fails to trigger a sustained breakout above those levels and the stock starts closing back below some key near-term support levels at $54.25 to its 50-day moving average of $53.66 a share. I would look to buy shares of Target off any weakness and anticipate that breakout, as long as it doesn't close below those key support levels.

The bottom line, Target's fundamentals are improving in a tough retail environment and that's nothing to sneeze at. Traders should be ready to play that breakout if it triggers soon, because the stock is set up technically for a big move higher if it confirms.

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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.