An under-$10 stock in the biotechnology and drugs complex that looks ready to trigger a near-term breakout trade is Galena Biopharma ( GALE), which is focused on discovering, developing and commercializing therapies addressing unmet medical needs using targeted biotherapeutics. This stock is off to a monster so far in 2012, with shares up over 240%. If you take a look at the chart for Galena Biopharma, you'll see that this stock has been trading range bound for the last three months, between $1.04 on the downside and $1.92 on the upside. This stock recently has started to move back above its 50-day moving average of $1.41 a share, and it's been finding support near $1.50 a share. Traders should now keep an eye on GALE for a potential major breakout trade if this stock can take out the upper-end of its recent range with volume. >>Hot Biotech Stocks Traded by Hedge Funds Market players should consider long-biased trades in GALE if it can manage to trigger a break out above some near-term overhead resistance at $1.80 to $1.92 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 2.1 million shares. If we get that action soon, then GALE could potentially make a massive move back towards its March resistance levels at $2.45 to $3.54 a share. If you're in the bull camp on GALE, then one could look to buy this stock off any weakness and simply use a stop right below its 50-day moving average of $1.41 a share. If you get long off weakness, then look to add to that position once GALE blasts through $1.80 to $1.92 a share with heavy volume. You could also just buy off strength once it takes out those levels with volume, and simply use a stop a few percentage points below $1.80 a share. Make note that the current short interest as a percentage of the float for GALE is pretty high at 7.5%. This stock is an excellent candidate for a short-squeeze play if it triggers that breakout soon.