Builders FirstSource Another under-$10 stock in the home improvement complex that looks poised for higher prices is Builders FirstSource ( BLDR). This company is a supplier and manufacturer of structural and related building products for residential new construction. This stock has been on fire so far in 2012 with shares up around 80%. If you take a look at the chart for Builders FirstSource, you'll notice that this stock has been uptrending extremely strong for the last six months, with shares soaring from a low of $1.70 to a recent high of $4.55 a share. During that monster move higher, shares of Builders FirstSource have mostly made higher highs and higher lows, which is bullish technical price action. During the last month, this stock has trended sideways a bit between $3.38 and $4.48 a share. That sideways action is now setting up BLDR to take out its 50-day moving average moving average at $3.91 and potentially spike significantly higher. Market players should now look for long-biased trades in BLDR if it can manage to trigger a breakout trade above its 50-day at $3.91, and then above some near-term overhead resistance at $4.10 a share with high volume. Look for volume on a sustained move or close above those levels that register near or above its three-month average action of 371,216 shares. If that breakout triggers soon, then BLDR will setup to re-test its 52-week high at $4.55 a share and possibly take that level out. If you're bullish on BLDR, then one could anticipate the breakout and look to buy this stock off weakness and simply use a stop around $3.38 a share. One could also buy off strength and get long once it clears its 50-day at $3.91 with high-volume. Any high-volume move below $3.38 would keep me away from BLDR for now.