Jade International

Another stock that's moving within range of triggering a near-term breakout trade is Jade International ( JADE), which specializes in the colored jewelry segment, it also offers high-end pieces set in yellow gold, white gold or sterling silver and adorned with colored stones, diamonds, pearls and precious stones. This stock has been trading off a bit so far in 2012, with shares down by 7.8%.

If you look at the chart for Jade International, you'll notice that this stock has just started to challenge its 50-day moving average of $1.74 a share and its trending just below its 200-day moving average of $1.79 a share. What's interesting about JADE here is that the volume today expanded dramatically with 480,000 shares traded versus its three-month average volume of 51,373 shares. Shares of JADE are now moving within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in JADE once it manages to break out above some near-term overhead resistance levels at $1.75 to $1.83 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 51,373 shares. If that breakout triggers soon, then JADE will set up to re-test or possibly take out its next major overhead resistance levels at $1.98 to $2.05 a share. Any high-volume move above $2.05 will then put $2.41 to $2.45 into focus for shares of JADE.

Traders can look to buy JADE off any weakness and simply use a stop that sits close to some near-term support at $1.65 a share. One can also buy off strength once JADE takes out those breakout levels with volume and then simply use a stop right below its 50-day at $1.74 a share.

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