One stock that's trading within range of a near-term breakout trade is Alexco Resource ( AXU), which operates two principal businesses: mineral exploration and development in Canada, primarily in Yukon Territory, and provision of consulting and project management services in respect of environmental permitting. This stock has been hit pretty hard by the sellers this year, with shares down by over 30% so far. If you take a look at the chart for Alexco Resource, you'll notice that this stock was downtrending badly until mid-August, with shares consistently making lower highs and lower lows, which is bearish technical price action. That said, it now looks like AXU has reversed its bearish trend to a bullish uptrend following a double bottom at around $3.21 to $3.36 a share. Shares of AXU have now started to surge back above its 50-day moving average of $3.90 a share, and it's moving into range of triggering a near-term breakout trade. >>5 Oversold Stocks Ready to Bounce Traders should now look for long-biased trades in AXU once it manages to break out above some near-term overhead resistance levels at $4.60 to $4.80 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 300,688 shares. If that breakout triggers soon, then AXU will have a great chance of re-testing or possibly taking out its next major overhead resistance levels at $5.60 to its 200-day moving average at $5.78 a share. If AXU clears its 200-day with volume, then this stock could even trade up to $6.60 a share. One could look to buy AXU off any weakness to anticipate the breakout, and then simply use a stop at around $4.20 to $4 a share. One could also just buy off strength once AXU takes out $4.60 to $4.80 a share with high volume. If you buy off strength, then use a stock at around $4.40 to $4.25 a share. I would add to either position once AXU clears its 200-day at $5.78 with heavy upside volume.