One software player that's rapidly moving within range of triggering a big breakout trade is Ebix ( EBIX), which provides a series of application software products for the insurance industry ranging from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries. This stock has been slammed hard by the bears so far in 2013, with shares off by 28%.

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If you look at the chart for Ebix, you'll notice that this stock has been uptrending for the last month, with shares moving higher from its low of $9.25 to its intraday high of $11.65 a share. During that uptrend, shares of EBIX have been consistently making higher lows and higher highs, which is bullish technical price action. That move is quickly pushing shares of EBIX within range of trigger a major breakout trade that could push the stock into a massive gap down zone from last June.

Traders should now look for long-biased trades in EBIX if it manages to break out above some near-term overhead resistance levels at $11.74 to $12 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 1.06 million shares. If that breakout triggers soon, then EBIX will set up to re-fill some of its previous gap down zone from June that started near $20 a share. Some possible upside targets if EBIX gets into that gap with volume are $14 to $16 a share.

Traders can look to buy EBIX off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $10.87 a share or around more near-term support at $10.39 a share. One can also buy EBIX 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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