Puma Biotechnology

Another stock that' quickly moving within range of triggering a major breakout trade is Puma Biotechnology ( PBYI), which acquires and develops innovative products for the treatment of various forms of cancer. This stock has been on fire so far in 2013, with shares up a whopping 113%.

>>3 Health Care Stocks Spiking on Big Volume

If you look at the chart for Puma Biotechnology, you'll notice that this stock has been uptrending very strong for the last six months, with shares soaring higher from its low of $18.52 to its recent high of $40.49 a share. During that uptrend, shares of PBYI have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of PBYI within range of triggering a major breakout trade.

Traders should now look for long-biased trades in PBYI if it manages to break out above its all-time high at $40.49 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 158,936 shares. If that breakout triggers soon, then PBYI will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $70 a share.

Traders can look to buy PBYI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $38 to $36 a share. One can also buy PBYI off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

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