One under-$10 name that's trading within range of a major breakout trade is Cardionet ( BEAT). This company provides continuous, real-time ambulatory outpatient management solutions for monitoring clinical information regarding an individual's health. This stock hasn't done much so far in 2012 with shares up just 6.7%.

If you take a look at the chart for Cardionet, you'll see that this stock has been destroyed by the sellers for the past three months, with shares dropping from a high of $3.44 to a recent low of $1.99 a share. During that plunge, shares of Cardionet have been making mostly lower highs and lower lows, which is bearish technical price action. That said, this stock has started to find some buying interest around $2 a share after it tested that price level twice and then bounced higher in the last few weeks. That action has now pushed BEAT within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in BEAT if it can manage to trigger a break out above some near-term overhead resistance at $2.36 a share with high-volume. Look for a sustained move or close above that level with volume that's near or above its three-month average action of 74,373 shares. If we get that action soon, then BEAT could easily bounce sharply higher and possibly take out its 50-day moving average at $2.69 and its 200-day moving average at $2.80 a share.

If you like the look of BEAT here, then you could buy it off weakness and simply use a stop around $2.04 a share. You could also buy it off strength and get long once it takes out $2.36 with volume. At last check, BEAT has hit an intraday high today of $2.31 and volume is tracking in very strong with over 150,000 shares traded.

If you liked this article you might like

The BEAT Goes on at BioTelemetry

Buyers Get Picky About Bargains

Shark Bites: Two Big Movers

Shark Bites: Two Big Movers

Ignore Market Jitters, Let Price Action Be the Guide