Another stock in the biotechnology and drugs complex that's approaching a major breakout trade is Neptune Technologies & BioResources ( NEPT), which is engaged in manufacturing and formulation of marine omega-3 phospholipids. Neptune researches, develops, produces and commercializes natural marine products derived from marine biomasses for the nutraceutical, pharmaceutical and cosmetic industries. This stock is off to a strong start in 2012, with shares up over 55% so far. Recently, Robin Cornwell of Catalyst Research issued a note on this stock to raise his 12-month price target to $9.25 from $8.75 a share. According to Cornwell, "Neptune is unique for a bio/pharma technology company in that the cash flow from the nutraceutical operation is able to cover a substantial portion of the R&D costs of the subsidiary companies." >>Hot Biotech Stocks Traded by Hedge Funds If you look at the chart for Neptune Technologies, you'll see that this stock has been uptrending extremely strong for the past six months, with shares soaring from a low of $2.46 to a recent high of $5.14 a share. During that uptrend, shares of NEPT have been consistently making higher lows and higher highs, which is bullish technical price action. In fact, just about every time this stock has pulled back during the last month, we've seen large volume buyers' step into the stock. Now shares of NEPT are trending very close to triggering a major near-term breakout trade. Market players should now look for long-biased trades in NEPT if it can manage to trigger a near-term breakout trade above some overhead resistance levels at $4.88 to $5.14 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 322,440 shares. If we get that move soon, then NEPT could spike to a new 52-week high above $5.14 a share. Some possibly upside targets are $6 to $7 a share if NEPT enters new 52-week-high territory, and sustains that trend. One could buy NEPT off weakness and simply use a stop below $4.51 or around $4.26 a share. Those levels are key near-term support. You could also use the 50-day moving average of $3.94 a share, if this stock really wants to pullback. One could also just buy off strength once NEPT takes out $4.88 and then $5.14 a share with heavy volume, and simply use a stop just below $4.51 a share.