An under-$10 name in the chemical manufacturing complex that's started to trigger a major breakout trade is Rentech ( RTK), which owns and operates a nitrogen fertilizer plant in East Dubuque, Illinois, that manufactures and sells natural gas-based nitrogen fertilizer products within the corn-belt region in the U.S. This stock is off to a monster start in 2012 with shares up 74%. If you take a look at the chart for Rentech, you'll notice that this stock has been a winning trade for the bulls over the last six months. During that timeframe, shares of Rentech have soared from a low of $1.26 to its recent high of $2.30 a share. During that monster run-up, shares of Rentech have been consistently making higher lows and higher highs, which is bullish technical price action. >>5 Stocks Setting Up to Break Out That move has now pushed Rentech into breakout territory since the stock moved above some near-term overhead resistance on monster volume. On Thursday, Rentech broke out above some overhead resistance at $2.20 to $2.22 on volume of 4.9 million shares. That volume easily surpassed its three-month average action of 2.32 million shares. Traders should now look for long-biased trades in RTK as long as it's trending above $2.10 to $2.20 with strong upside volume flows. I would consider any upside volume day that registers near or above 2.38 million shares as bullish action. If this breakout that triggered on Thursday is the real deal, then this stock should easily continue to uptrend and tag $3 to $4 a share in the near future. A move to $4 will only come into play if the past resistance at $3 is taken out on a closing basis with volume. If you're bullish on RTK, and you get a chance to buy this stock off of weakness, then I would use $2.20 as my mental stop. Any high-volume move below $2.20 would take this stock off my long radar since chances are high that it will move back towards $2 a share at the minimum. This stock isn't heavily shorted, with just 3.2% of its float sold short, but the bears have been increasing their bets on RTK from the last reporting period by 14.3% or by about 895,000 shares. The breakout on Thursday could have been the start of some serious short-covering, so make sure to have this name on your breakout radar going forward.