One under-$10 name that looks ready to trigger a near-term breakout trade is Oncothyreon ( ONTY), a clinical-stage biopharmaceutical company focused primarily on the development of therapeutic products for the treatment of cancer. This stock has been beaten-up by the sellers so far in 2012, with shares down by close to 50%. If you take a look at the chart for Oncothyreon, you'll see that this stock gapped down big in March from over $8 to under $5 a share on monster volume. Following that massive move lower, this stock has continued to downtrend with shares hitting a recent low of $3.35 a share. During that downtrend, shares of Oncothyreon have consistently made lower highs and lower lows, which is bearish technical price. That said, the stock has started to reverse that trend recently with shares now making higher lows and higher highs. This stock is now trading within range of triggering a near-term breakout trade. >>22 Biopharma Stocks With Breakout Potential in 2012 Market players should now look for long-biased trades in ONTY if it can manage to trigger a breakout above some near-term overhead resistance at $3.99 to $4.20 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 683,880 shares. If we get that action soon, then ONTY could easily tag its next significant overhead resistance levels at $4.50 to $5.50 a share, or possibly even its 200-day moving average of $6.09 a share. If you like the look of ONTY here, then you could buy it off weakness and simply use a stop around $3.50 a share. You could also buy it off strength and get long once it takes out $3.99 to $4.20 with volume. Keep in mind that a move over $3.99 will put ONTY back above its 50-day moving average of $3.94 a share which would be bullish technical price action. Traders should consider any sustained trend above its 50-day for ONTY as bullish price action.