Another name in the biotechnology and drugs complex that's within range of triggering a breakout trade is Dendreon ( DNDN), which is focused on the discovery, development and commercialization of therapeutics that may improve cancer treatment options for patients. This stock has been ripping so far in 2012, with shares up over 35%.

If you look at the chart for Dendreon, you'll see that this stock plunged big from its February high of $17.04 a share to a recent low of $9.05 with heavy volume. Following that huge drop, shares of DNDN have now started to uptrend slightly and make higher lows. The stock is now trading within range of triggering a near-term breakout trade.

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Traders should now look for long biased trades in DNDN if this stock can manage to take out some near-term overhead resistance at $10.74 with volume. Look for volume on a move above that level that's near or well above its three-month average action of 11 million shares. At last check, volume today is over 3 million and the stock has hit a daily high of $10.74 a share.

If that breakout triggers soon, then look for DNDN to re-test its 50-day moving average of $12.43 a share, or possibly hit its 200-day moving average of $15.44 a share. Look for a sustained high-volume move and close above $10.74 to signal that DNDN has a chance to spike big. I would simply avoid any long trades on DNDN if that breakout never hits or if shares drop below some near-term support at $10 to $9.72 a share with high volume.

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