Another stock that's setting up to hit a near-term breakout trade is Gevo ( GEVO), a renewable chemicals and advanced biofuels company focused on the development and commercialization of alternatives to petroleum-based products. This stock has been destroyed by the bears so far in 2012, with shares down a whopping 65%. >>3 Hot Stocks to Trade (or Not) If you take a look at the chart for Gevo, you'll notice that this stock gapped down back in late September from around $3.50 to a low of $1.77 a share with monster downside volume. Following that plunge, shares of GEVO have started to tick higher and enter a sideways trading pattern between $1.80 and $2.20 a share. That move is quickly pushing GEVO within range of breaking out above the high-end of its sideways chart pattern. Market players should now look for long-biased trades in GEVO once it manages to take out some near-term overhead resistance levels $2.13 to $2.25 a share with high volume. Look for a sustained move or close above those levels with volume that registers close to or above its three-month average action of 564,063 shares. If that breakout triggers soon, then GEVO will setup to re-test or possibly take out its next significant overhead resistance levels at $2.60 to $2.80 a share. Any high-volume move above its 50-day at $2.80 will then give GEVO a great chance to tap $3.25 to $4 a share. One can look to buy GEVO off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $1.80 a share. One could also buy off strength once GEVO takes out those breakout levels with volume and then use a stop just below $2 to $1.95 a share. I would add to either position once GEVO clears $2.60 to $2.80 a share with heavy volume.