One under-$10 stock that's starting to trigger a big breakout trade today is Power-One ( PWER). This company is a designer and manufacturer of inverters for the renewable energy industry. This stock is on fire so far in 2012 with shares up over 30%.

If you take a look at the chart for Power-One, you'll notice that this stock had been stuck in a downtrend that took it from its September high of $7.53 to a recent low print of $3.68 a share. After the stock hit that low, it found some big buying support and changed its trend and soared higher. Now Power-One is starting to trigger a big breakout trade with the stock moving above some near-term overhead resistance levels.

Traders should now watch PWER for a sustained high-volume move and close above some near-term overhead resistance at $5.02 to $5.07 a share. At last check, the stock has already cleared those levels intraday and volume is tracking in extremely strong. Volume has gone over 7 million shares which is well above its three-month average volume of 2.3 million shares. If we can get a strong close in PWER, then traders should target a move back toward its next significant overhead resistance at $6 to $6.28 (200-day), or possibly even higher.

One could be a buyer of PWER off any notable weakness and simply use a mental stop that's a few percentage points below the breakout levels of $5.02 to $5.07 a share. I would only add to any long positions if PWER eventually takes out its 200-day moving average of $6.28 with high-volume.

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Power-One Inc. Stock Downgraded (PWER)