One under-$10 stock that's just starting to trigger a big breakout trade is Repligen ( RGEN), a biopharmaceutical company focused on the development and commercialization of therapies that harness biological pathways and deliver value to patients and clinicians in the fields of neurology and gastroenterology. This stock is off to a monster start in 2012 with shares up over 42%.

If you take a look at the chart for Repligen, you'll see that this stock has been uptrending very strong for the past four months. This strong uptrend started right after the stock broke out above some past overhead resistance at $3.58 to $3.72 a share on monster volume. Following that breakout, the stock soared towards its current price of just under $5 a share. This strong move has now pushed RGEN within range of triggering another major breakout.

Market players should now watch RGEN for a breakout trade if this stock can manage to take out some near-term overhead resistance at $4.92 to $5.12 with high volume. A sustained high-volume move and close over those levels should set this stock up to re-test its next significant overhead resistance level at $5.36 a share. Look for volume on a move above $4.92 to $5.36 that registers near or well above its three-month average action of 43,237 shares. If we get that action soon, then RGEN has a great chance to trend higher toward $6 to $7 a share in the very near future.

I would consider looking for long-biased trades in RGEN as long as it's trending above $4.92 to $5.36 a share with strong upside volume flows. I would simply avoid this stock from the long side if it fails to trend above those levels and drops back below some near-term support at $4.65 with volume.

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