If you take a look at the chart for Iridium Communications, you'll notice that this stock has been trending sideways for the last few weeks, with shares moving between $6.71 on the downside and $7.25 on the upside. Shares of IRDM are starting to bounce today off that $6.71 low and quickly move within range of triggering a near-term breakout trade.

>>4 Breakout Buys for January -- and One Sell

Traders should now look for long-biased trades in IRDM if it manages to break out above some near-term overhead resistance levels at $7.25 to its 200-day at $7.70 a share and once it takes out more resistance at $7.83 to $8.09 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 555,585 shares. If that breakout hits soon, then IRDM will set up to re-test or possibly take out its next major overhead resistance levels at $9.24 to $9.73 a share.

Traders can look to buy IRDM off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $6.24 a share. One could also buy IRDM off strength once it takes out those breakout levels with volume and then simply use a stop that sits right around some key near-term support at $6.71 a share.

One other thing to note is that IRDM is a favorite target of the bears since its current short interest as a percentage of its float stands at 11.2%. We could easily see this stock short-squeeze if those breakout levels are taken out soon with volume.

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