A stock in the computer hardware complex that's trading very close to triggering a major breakout trade is Cray ( CRAY), which develops, manufactures, markets and services high-performance computing systems, known as supercomputers and provides engineering services related to HPC systems and solutions. This stock is blazing a trail to the upside so far in 2012, with shares up around 75%.

If you look at the chart for Cray, you'll notice that this stock gapped up big in late April twice as the stock skyrocketed from around $7 to a high of $11.50 a share. Those gap-ups were accompanied with heavy upside trading volume. Following that action, shares of Cray have trended sideways for the past month and change, between $10 on the downside and $11.87 on the upside. That move has now pushed Cray within range of triggering a major near-term breakout trade and taking out its upside resistance.

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Market players should now look for long-biased traders in CRAY if it can manage to trigger a break out above some near-term overhead resistance at $11.87 a share with high-volume. Look for a sustained move or close above $11.87 levels with volume that hits near or above its three-month average action of 393,229 shares. If we get that move soon, then CRAY could easily trade up towards $15 a share or higher.

One could look to play CRAY off weakness as long as it holds above that near-term support at $9.99 a share, or at last resort its 50-day moving average of $9.83 a share. I would use those levels for stops if you buy off weakness. I would rather get long off strength once CRAY clears $11.87 with high-volume, and then simply use a stop near $11 or higher in case the breakout fails.

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