One stock in the social media complex that's trending close to triggering a near-term breakout trade is Facebook ( FB). This stock has been hammered by the sellers so far in 2012, with shares down around 40%.

If you take a look at the chart for Facebook, you'll see that since it came public in May this stock sold off hard from $45 to its recent low of $17.55 a share hit earlier this month. During that sharp selloff, shares of FB were mostly making lower highs and lower lows, which is bearish technical price action.

That said, since hitting $17.55, FB has started to reverse its bearish downtrend and it has entered a bullish uptrend. The stock has started to move back above its 50-day moving average, and it's trading within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in FB once it manages to break out above some key overhead resistance levels at $23.37 to $25 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 41 million shares. If that breakout triggers soon, then FB will have a great chance of getting into a previous gap down zone above $25 that started around $28 a share. Some potential upside targets if FB gets into that gap over $25 are $29.50 to $32.50 a share.

One could look to buy FB off any weakness to anticipate that breakout, and then simply use a stop that sits just below its 50-day at $22.14 a share. One could also just buy off strength once FB clears $23.37 a share, and then simply use the same stop around $22.14 a share. I would add to either position once FB clears $25 a share with strong upside volume and gets into that gap down zone from back in late July. It's worth mentioning that Facebook is a heavily-shorted stock, since the current short interest as a percentage of the float is very high at 17%. If FB can manage to trigger that breakout soon, then this stock could be setting up for a monster short-squeeze.

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