Protalix Bio Therapeutics

Another under-$10 name that looks ready to break out here is Protalix Bio Therapeutics ( PLX), a biopharmaceutical company focused on the development and commercialization of recombinant therapeutic proteins based on its ProCellEx protein expression system, ProCellEx. This stock is off to a bullish start in 2012, with shares up over 37%.

If you take a look at the chart for Protalix Bio Therapeutics, you'll notice for the last six months, this stock has been uptrending strong, with shares soaring from a low of $4.78 to a recent high of $7.70 a share. During that sharp move higher, shares of Protalix Bio Therapeutics have mostly made higher lows and higher highs, which is bullish technical price action. That move has now pushed PLX within range of triggering a near-term breakout trade.

>>22 Biopharma Stocks With Breakout Potential in 2012

Traders should now look for long-biased trades in PLX if it can manage to trigger a near-term breakout trade above $6.80 to $6.95 a share with high volume. Look for a sustained move or close above those levels on volume that's near or above its three-month average action of 858,880 shares. If we get that action soon, then PLX has a great chance of re-testing and possibly taking out its May high of $7.70 a share.

One could be a buyer of PLX off weakness to anticipate the breakout, and simply use a stop just below its 50-day moving average of $6.54 a share. One could also just buy off strength once PLX clears $6.80 to $6.95 with high-volume, and simply use as stop that's a few percentage points below $6.95 a share.

If that breakout does hit and we see $7.70 get taken out with volume, then I would add to any long positions in PLX. This stock has a massive gap-down above $7.70 that could get filled. That would take PLX back towards $10 a share.

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