ChannelAdvisor

One enterprise software player that's starting to trend within range of triggering a big breakout trade is ChannelAdvisor ( ECOM), a provider of software-as-a-service solutions that enables retailers and manufacturers to integrate, manage and optimize their merchandise sales across hundreds of online channels. This stock has been on fire so far in 2013, with shares up a whopping 119%.

>>4 Stocks Rising on Unusual Volume

If you take a look at the chart for ChannelAdvisor, you'll notice that this stock is spiking sharply higher today right above its 50-day moving average of $36.14 a share with strong upside volume flows. This move has started to push shares of ECOM into breakout territory, since the stock has taken out some near-term overhead resistance at $39.73 a share. Shares of ECOM are now quickly moving within range of triggering an even bigger breakout trade.

Traders should now look for long-biased trades in ECOM if it manages to break out above some near-term overhead resistance levels $40.91 to its all-time high of $41.25 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 268,153 shares. If that breakout triggers soon, then ECOM will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $50 to $55 a share.

Traders can look to buy ECOM off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $36.14 a share. One can also buy ECOM off strength once it starts to take 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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