One stock that's quickly approaching a major breakout is Molycorp ( MCP) which I also highlighted recently among other inflation-beating stocks to watch. This company is a development stage rare earth oxide producer in the Western hemisphere and owns a rare earth project outside of China. This stock has started to look very bullish of late, with shares up around 20% so far in 2011. If you take a look at the chart for Molycorp, you'll see that the stock is approaching a key breakout if it can manage to trade above some past overhead resistance at around $63 a share. If it can trade above that level, it would mark a brand new all-time high for MCP. This means that just about anyone who has bought the stock is making money. More important, it means that the stock is in a very strong uptrend that should bode well for higher prices. What I really like about MCP here is that huge upside volume has been moving into the stock for the past couple of weeks. I would consider it very constructive if it breaks out soon on volume that's well above the three-month average volume of 6.1 million shares. If that happens, I see no reason why this stock can't start a new bullish trend that could easily take it to $100 a share. In fact, $100 might even be low considering that the stock has a large short interest. The current short interest as a percentage of the float for MCP is 19.2%. Even savvy short-sellers know that it's normally a very bad idea to stay short a stock that's printing new highs. Molycorp is the market leader for the rare earth metals sector. If this stock does break out, then I would suggest looking for more upside action in some of the other sector names. A few worth mentioning are Avalon Rare Metals ( AVL), Titanium Metals ( TIE) and General Moly ( GMO). Avalon Rare Metals Avalon has started to see some huge volume come into the stock as it approaches a big breakout at $8.57 a share. In fact, as I write this AVL is punching through that level right now, which puts the stock at an all-time high. I would buy that breakout because I expect short-covering to follow and run this stock significantly higher. General Moly Also watch General Moly for a breakout if the stock pushes above $5.70 to $6 a share and then $6.60 to $7.25 a share. I will note that volume at GMO isn't anything to write home about. That doesn't mean GMO can't run thought if the sector heats up again. Titanium Metals Titanium Metals, one of TheStreet Ratings' top-rated metals and mining stocks, will breakout at $19.75 to $20.70 a share. I discussed the stock in more detail in a recent article about eight stocks that have seen notable insider activity lately.