Cell Therapeutics Another under-$10 stock that's nearing a major breakout is Cell Therapeutics ( CTIC). This company develops, acquires and commercializes treatments for cancer. This stock has had a rough go of it in 2011 with shares off by over 45%. If you take a look at the chart for Cell Therapeutics, you'll see that this stock recently gapped down from over $1.30 a share to under $1.15 a share. After that gap down, the stock continued to trend lower and hit a recent low of $1.01 a share. That said, the stock is spiking up sharply today on big volume and is flirting with a move over its 50-day moving average of $1.14 a share. Often when a stock spikes back above its 50-day moving average with volume, it then experiences a much larger spike higher in the near future. Market players should now watch for a breakout trade to trigger for CTIC if the stock can manage to sustain a high-volume move and close above some near-term overhead resistance at $1.20 a share. Volume so far today has already registered over 3.2 million shares, which is well above is three-month average action of 1.3 million shares. The stock has touched $1.17 a share today, so look for a close over $1.20 to signal that CTIC wants to refill some of that recent gap down. One could be a buyer off strength and get long on a high-volume move over $1.20. I would simply use a mental stop just below today's low of $1.03 a share in case the breakout fails. You could also buy off any weakness today with the same mental stop. Target a run back toward $1.48 to $1.53 (200-day), or possibly much higher if the bulls jump into this name big in the coming days or weeks. Keep in mind that CTIC is heavily shorted with around 12.5% of their tradable float currently sold short by the bears. Any move over $1.20 with volume should spark a decent short-squeeze.