Another stock that's quickly moving within range of triggering a major breakout trade is EntreMed ( ENMD), which is a clinical-stage pharmaceutical company, which develops therapeutic candidates for the treatment of cancer and inflammation. This stock is off to a hot start so far in 2013, with shares up by 49%.

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If you look at the chart for EntreMed, you'll notice that this stock has been uptrending modestly for the last month, with shares moving higher from its low of $1.83 to its recent high of $2.14 a share. During that uptrend, shares of ENMD have been mostly making higher lows and higher highs, which is bullish technical price action. Also, the upside volume for ENMD tracked in strong on Thursday, after 195,000 shares traded hands versus its three-month average volume of 50,189 shares. That action has now pushed shares of ENMD within range of triggering a major breakout trade.

Market players should now look for long-biased trades in ENMD if it manages to break out above some near-term overhead resistance levels at $2.14 to $2.38 a share and then once it clears some past resistance at $2.40 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 50,189 shares. If that breakout triggers soon, then ENMD will set up to re-test or possibly take out its next major overhead resistance level at $3 to $3.73 a share. Any high-volume move above $3.73 will then put its next major overhead resistance level at $5 into range for shares of ENMD.

Traders can look to buy ENMD off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $1.83 a share. One can also buy ENMD 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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