One retail stock that's trading within range of trigging a near-term breakout trade is Sears ( SHLD), which operates as a specialty retailer in the U.S. and Canada. This stock is off to a monster start in 2012, with shares up over 60%.

If you take a look at the chart for Sears, you'll see that this stock sold off hard from its recent high of $85.90 to a low of $49.75 a share. After hitting that low, Sears found big buying interest and formed a double bottom at around $50 a share. This stock is now setting up to challenge some near-term overhead resistance and potentially trigger a breakout trade.

Traders should now look for long-biased traders in SHLD if the stock can manage to trigger a breakout above some near-term overhead resistance at $57.24 and then its 200-day moving average at $58.60 a share with high volume.

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Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.55 million shares. If we get that action soon, look for SHLD to tag its 50-day moving average of $63.29, or possibly even some more overhead resistance near $65.70 to $69.29 a share.

Look for confirmation of higher prices in SHLD as long as this stock is trending above its 200-day moving average of $58.60 with strong upside volume flows. Keep in mind that SHLD moved sharply higher on Thursday with volume of 3.33 million shares, which is well above its average volume.

I also featured Sears as one of my earnings short-squeeze plays this week.

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