Jazz Pharmaceutical If you're looking for a breakout trade in the biotechnology complex, then take a look at Jazz Pharmaceutical ( JAZZ). This is a specialty pharmaceutical company focused on the identification, development and commercialization of pharmaceutical product. Jazz markets two products: Xyrem, which is a product approved by the FDA, for the treatment of both cataplexy and excessive daytime sleepiness in patients with narcolepsy, and Luvox CR for the treatment of obsessive compulsive disorder. This stock has been a market leader this year with shares up over 110%. If you take a look at the chart for Jazz Pharmaceutical, you'll see that this stock has been in a beautiful uptrend since it formed a perfect triple bottom chart pattern back in mid-May and early June. Since that triple bottom, the stock has been making mostly higher lows and higher highs, which is bullish. The stock is now setting up for a major breakout if it can manage to trade above some near-term overhead resistance at around $44.05 a share. At last check, this stock hit a high today of $43.21 a share, but it has since turned back from that level and sold off to below $42 a share. What I like about this potential breakout in JAZZ is that volume during the past month has been expanding dramatically on the up days. A number of recent up days has registered volume close to or well above its three-month average action of 809,000 shares. This could mean that large trades are positioning themselves for a big breakout in JAZZ soon. One could be a buyer of this stock on any big weakness in anticipation of the breakout. I would simply use a stop near or a few percentage points below its 50-day moving average of $37.02 a share. If you don't want to buy on weakness, then get long on any move above $44.05 a share that comes with strong volume. You could also buy some call options on a move above that level since the stock could spike big if the breakout is the real deal. This stock has a decent short interest with 7.3% of the tradable float sold short by the bears. Any future breakout could easily spark the bears to cover their short bets and push this stock sharply higher. Keep this name on your radar in the coming days and weeks.