Market Vectors Gold Miners ETF

Another stock that's quickly moving within range of triggering a near-term breakout trade is Market Vectors Gold Miners ETF ( GDX), which seeks to replicate as closely as possible the price and yield performance of NYSE Arca Gold Miners Index. This ETF has been hit hard by the bears so far in 2013, with shares off by 34.9%.

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If you look at the chart for Market Vectors Gold Miners ETF, you'll notice that this ETF has been uptrending for the last two months, with shares moving higher from its low of $22.21 to its recent high of $30.94 a share. During that uptrend, shares of GDX have been making mostly higher lows and higher highs, which is bullish technical price action. That move is quickly pushing shares of GDX within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in GDX if it manages to break out above some near-term overhead resistance levels at $30.94 to $31.27 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 31.39 million shares. If that breakout triggers soon, then GDX will set up to re-test or possibly take out its next major overhead resistance levels at$34 to its 200-day moving average at $35.35 a share. If its 200-day gets taken out, then GDX could easily tag $40 to $45 a share.

Traders can look to buy GDX off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $28.91 a share, or below $27 a share. One can also buy GDX 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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