Another under-$10 stock that looks ready to trigger a major breakout trade is Idenix Pharmaceuticals ( IDIX). This is a biopharmaceutical company engaged in the discovery and development of drugs for the treatment of human viral diseases with operations in the U.S. and Europe. This stock has been trending higher so far in 2012 with shares up over 20%. On Wednesday, A William Blair analyst said that Idenix Pharmaceuticals could report some important good news over the next few months. The firm said the following events could move this stock higher: more clinical trial data on IDX184, its most advanced drug candidate; a new study of a regimen that combines IDX184 and another experimental drug; clinical trial data on a second drug candidate called IDX719; and the start of clinical trials of a third hepatitis C medication, IDX19368. If you take a look at the chart for Idenix Pharmaceuticals you'll notice that this stock was hammered off its January high of $15.25 to a recent low of $7.17 a share. After tagging that low, IDIX has rebounded and moved back above its 200-day moving average and within range of its 50-day moving average of $9.25 a share. That rebound has now pushed IDIX within range of triggering a major breakout trade. Market players should now look for long-biased trades in IDIX if it can manage to trigger a break out above its 50-day moving average of $9.25 a share with high-volume. That $9.25 area is also a previous overhead resistance as well as its 50-day moving average. Look for volume on a sustained move or close above that level that registers near or well above its three-month average action of 1.6 million shares. This stock is a favorite target of the short-sellers. The current short interest as a percentage of the float for IDIX is very high at 15.7%. If that breakout above $9.25 triggers soon, then IDIX could easily short-squeeze back towards its next significant overhead resistance levels at $11 to $12.68 a share, if not even higher. Traders should look to buy this off of high-volume strength above $9.25 and simply use a stop around its 200-day moving average of $8.20 a share, or much tighter depending on your position size. As of the most recently reported quarter, Idenix shows up in Seth Klarman's Baupost Group portfolio.