BioFuel Energy Another stock that's trending within range of triggering a major breakout trade is BioFuel Energy ( BIOF), which is engaged in the production and sale of ethanol and its co-products through its two ethanol production facilities located in Wood River, Nebraska and Fairmont, Minnesota. This stock has been rocking to the upside during the last six months, with shares up 38%. If you take a look at the chart for BioFuel Energy, you'll see that this stock has been downtrending badly for the last four months, with shares dropping from its high at $7.80 a share to its recent low of $3.38 a share. During that move, shares of BIOF have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of BIOF have now started to bounce off some support levels at $4 to $4.30 a share and it's quickly moving within range of triggering a breakout trade above some key overhead resistance levels and above a key downtrend line. Market players should now look for long-biased trades in BIOF if it manages to break out above some near-term overhead resistance levels at $5.21 to $5.44 a share and then once it clears more resistance at $5.66 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 150,892 shares. If that breakout triggers soon, then BIOF will set up to re-test or possibly take out its next major overhead resistance levels at $6.55 to $7 a share. Traders can look to buy BIOF off any weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support at $4 a share. One could also buy off strength once BIOF clears those breakout levels with volume and then simply use a stop that sits just below its 200-day moving average of $5.07 a share.