Another under-$10 stock that's quickly approaching a big breakout is Dex One ( DEXO), a marketing services company that helps local businesses to reach consumers. This stock is down huge in 2011 with shares off by over 75%. If you take a look at the chart for Dex One, you'll notice that this stock just put in a huge run from its October low of 36 cents to a recent high of $1.92 a share. Since that run, the stock has started to pullback and form a consolidation pattern between $1.30 and $1.70 a share. The volume action overall for both the up and down days has also been expanding dramatically in the past month. Market players should now watch DEXO for a near-term breakout if the stock can manage to clear $1.60 to $1.66 with volume. Look for volume that's tracking in close to or above its three-month average action of 1.3 million shares. If that move happens soon, then look for DEXO to trade towards $1.92 to $2.20 (the 200-day) a share, or possibly much higher. Keep in mind that it's important for DEXO to close above $1.66 with volume, not just take it out intraday. >>5 Stocks Setting Up to Break Out You could now be a buyer of DEXO off any weakness and simply place a stop just below some big near-term support at $1.30 a share. You could also by off strength and get long on a move above $1.60 to $1.66, with a stop just below those levels, or down to $1.30 if you want to give it more room. This stock is heavily shorted with around 11.6% of the tradable float currently sold short by the bears. The short-sellers have also been increasing their bets from the last reporting period by 10.8%, or by about 525,400 shares. Any move over $1.60 to $1.66 should spark a big short-squeeze, so keep this name on your trading radar.