Another under-$10 stock that's quickly moving within range of triggering a major breakout trade is MiMedx Group ( MDXG), an integrated developer, manufacturer and marketer of patent protected regenerative biomaterial products and allografts processed from human amniotic membrane. This stock has been on fire so far in 2013, with shares up a whopping 88%.
If you take a look at the chart for MiMedx Group, you'll notice that this stock has been trending sideways for the last month, with shares moving between $6 on the downside and $7.50 on the upside. Shares of MDXG are now starting to spike higher today with heavy upside volume as it challenges some near-term overhead resistance levels. If those levels get taken out soon, then this stock could trigger a major breakout trade.Traders should now look for long-biased trades in MDXG if it manages to break out above some near-term overhead resistance levels at $7.27 to $7.35 a share and then once it clears its 52-week high at $7.50 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 651,805 shares. If that breakout triggers soon, then MDXG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $9 to $10 a share. Traders can look to buy MDXG off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $6.81 a share, or below its 50-day at $6.17 a share. One can also buy MDXG off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
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