An under-$10 name in software and programming complex that's trading within range of a major breakout trade is Mitek Systems ( MITK), which is engaged in the development, sale and service of software solutions related to mobile imaging applications and intelligent recognition software. This stock is stock has been destroyed by the bears so far in 2012, with shares down by over 60%. If you take a look at the chart for Mitek Systems, you'll notice that this stock topped out back in March at just under $13 a share. After forming that top, shares of MITK plunged with big selling volume to under $6 a share. Then, in early May, this stock gapped down big from over $5 to under $3 a share with heavy volume. Following that gap-down, the stock has continued to trend lower and it's recently hit a low of $1.90 a share. >>7 Value Stocks to Buy in Facebook's Wake That said, now the stock has started to reverse the downtrend during the last few weeks, and it's now within range of triggering a near-term breakout trade. Traders should now look for long-biased trades in MITK if it can manage to trigger a breakout above yesterday's high of $3.12, and then above its May gap-down day high of $3.30 a share with high volume. Look for a sustained move or close above those levels on volume that hits near or well above its three-month average action of 1.2 million shares. If we get that action soon, then MITK start to fill that gap and possibly take out its 50-day moving average of $3.86 a share. A move higher through its 50-day could easily spike MITK close to $6 a share as that gap gets filled. If you're bullish on MITK, then one could buy off weakness and simply use a stop just below Wednesday's low of $2.39 a share. If this stock is truly ready for big spike higher, then I doubt it takes out that low. It might be better to buy off strength and get long once MITK gets into that gap above $3.30 a share, and then add to any long positions above its 50-day at $3.86 a share. I would consider it very bullish price action for MITK if it can recapture its 50-day and sustain a high-volume trend above that level.