Another stock that's starting to trend within range of triggering a big breakout trade is Cyan (CYNI), which provides carrier-grade networking solutions that transform disparate and inefficient legacy networks into open, high-performance networks. This stock has been destroyed by the bears so far in 2013, with shares off sharply by 60%.

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If you take a look at the chart for Cyan, youll notice that this stock has been trending sideways and consolidating for the last month and change, with shares moving between $3.92 on the downside and $4.47 on the upside. Shares of CYNI are now started to spike higher off some near-term support at $4.14 a share. That move is quickly pushing shares of CYNI within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern.

Traders should now look for long-biased trades in CYNI if it manages to break out above some near-term overhead resistance levels at $4.50 to $4.47 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 353,208 shares. If that breakout triggers soon, then CYNI will set up to re-test or possibly take out its next major overhead resistance levels at $5.38 to its 50-day moving average of $5.49 a share. Any high-volume move above those levels will then give CYNI a chance to tag $6, or re-fill some of its previous gap down zone from November that started just above $8 a share.

Traders can look to buy CYNI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $3.92 a share. One could also buy CYNI off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

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