Another under-$10 name in the biotechnology and drugs complex that's trading within range of a near-term breakout trade is PharmAthene ( PIP), a biodefense company engaged in the development and commercialization of medical countermeasures against biological and chemical weapons. This stock is off to a decent start in 2012, with shares up over 15% so far. If you take a look at the chart for PharmAthene, you'll notice that this stock gapped up and spiked huge in early June from around $1.21 a share to a high of $1.84 a share. Following that sharp move higher, shares of PharmAthene then went on to pullback hard and hit a near-term low of $1.31 a share. Now the stock has started to gain some buying momentum again with PIP moving back above its 50-day moving average of $1.43 a share. This stock is also starting to flirt with taking out its 200-day moving average of $1.47 a share. >>22 Biopharma Stocks With Breakout Potential in 2012 Traders should now look for long-biased trades in PIP if it can manage to trigger a break out above some near-term overhead resistance at $1.53 to $1.57 a share with high-volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 423,573 shares. If we get that action soon, then PIP will have a great chance of re-testing and possibly taking out its next major overhead resistance levels at $1.68 to $1.70, and at $1.84 to $1.89 a share. If all those levels get taken out with volume, then PIP will be free to clear $2.10 a share, and after $2.10 there's very little overhead resistance until $2.40 to $3.35 a share. If you're bullish on PIP, then one could buy off weakness and simply use a stop right below its 50-day moving average of $1.43 a share. There's some pretty solid near-term support at $1.40 and at $1.31 a share as well that traders can key off of. One could also just buy off strength once $1.53 to $1.57 are taken out with volume, then add above $1.89 to $2.10 a share if the upside volume continues to track in strong. Use a stop just below the 200-day at $1.47 a share if you get long off strength. This stock is pretty popular among short-sellers. The current short interest as a percentage of the float for PIP is rather high at 13.4%. This makes PIP a great short-squeeze candidate if it can manage to enter breakout territory soon.