Uni-Pixel

Another stock that looks poised for a major breakout trade is Uni-Pixel ( UNXL), which manufactures electronic film products using its proprietary manufacturing process, UniBoss, and delivers its products to the display, touch screen and flexible electronics market segments. This stock is off to a decent start so far in 2013, with shares up 23%.

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If you take a look at the chart for Uni-Pixel, you'll notice that this stock has been uptrending for the last two months, with shares moving higher from its low of $11.39 to its recent high of $18.33 a share. During that uptrend, shares of UNXL have been making mostly higher lows and higher highs, which is bullish technical price action. Shares of UNXL recently pulled right back to its 50-day moving average at $14.91 a share, and the stock has now started to bounce strongly off that level and move within range of triggering a major breakout trade.

Traders should now look for long-biased trades in UNXL if it manages to break out above some near-term overhead resistance levels at $18.33 to $18.67 a share and then once it clears its 200-day moving average at $19.07 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 1.27 million shares. If that breakout triggers soon, then UNXL will set up to re-test or possibly take out its next major overhead resistance levels $25 to $30 a share.

Traders can look to buy UNXL off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $14.91 a share. One could also buy UNXL 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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