Another stock that's trading within range of a major breakout trade is technology player Stratasys ( SSYS), a manufacturer of 3D printers and production systems for the office-based rapid prototyping and direct digital manufacturing markets. This stock is off to a monster start in 2012, with shares up over 73% so far.

If you take a look at the chart for Stratasys, you'll see that this stock was trading range bound since the start of June, between $42.70 to $43.68 on the downside and around $49 to $50.73 on the upside. Shares of Stratasys have started to break out above that upper end of that range today with shares now trading at $53 a share. That breakout is now quickly pushing SSYS within range of triggering another major breakout trade.

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Market players should now look for long-biased traders in SSYS if it can manage to trigger a breakout above some overhead resistance levels at $54.96 to $55.66 a share with high volume. Look for a sustained move or close above those levels with volume that hits close to or above its three-month average action of 395,489 shares. If we get that action soon, then SSYS will enter all-time-high territory and the stock should easily trade north of $60 a share. Some possible targets are $70 to $85 if that breakout triggers and holds.

One could buy SSYS off weakness to anticipate that breakout, and simply use a stop around the high of the recent range near $50.73 a share. If you buy off weakness, then you can had to any long positions cone SSYS takes out $54.96 to $55.66 with high volume. You could also just buy off strength and get long once SSYS takes out those breakout levels with volume, and simply use a stop just below $54.96 a share.

This stock has some big-time short-squeeze potential if it breaks out soon. The current short interest as a percentage of the float for SSYS is a whopping 20.2%. The bears will be sweating bullets if that high-volume breakout triggers soon, so keep this name on your trading radar.

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