One stock in the biotechnology and drugs complex that's trading within range of a major breakout trade is pSivida ( PSDV), which, together with its subsidiaries, develops drug delivery products for treatment of back-of-the-eye diseases that are administered by implantation, injection, or insertion. This stock is off to a monster start in 2012 with shares up over 110%. If you look at the chart for pSivida, you'll see that this stock dropped pretty hard once it hit its April high of $2.55, since shares then dropped to a low of $1.76 a share in June. During that sharp slide lower, shares of PSDV were making lower highs and lower lows, which is bearish technical price action. That said, during the last month shares of pSivida have formed a double bottom chart pattern at around $1.76 to $1.78 a share. That bottom brought in buyer who have pushed the stock back above both its 50-day and 200-day moving averages. Now shares of pSivida are trading within range of a major breakout trade. >>Hot Biotech Stocks Traded by Hedge Funds Traders should now look for long-biased trades in PSDV if it can manage to take out some major overhead resistance levels at $2.80 to $2.85 a share with high volume. Look for a sustained move or close above those levels with volume that's near or above its three-month average action of 70,847 shares. If we get that action soon, then PSDV has tremendous upside since the next significant overhead resistance level sits at $4 to $4.81 a share. One could look to buy PSDV off weakness and simply use a stop at around its 200-day moving average of $2.18 a share. Or you could buy off strength and get long once PSDV takes out $2.80 to $2.85 with volume, and then simply use a stop at around $2.60 to $2.55 a share.