James River CoalAnother under-$10 stock that looks ready to trigger a major breakout trade is James River Coal ( JRCC), which is engaged in processing and selling of thermal and metallurgical coal through eight active mining complexes located throughout eastern Kentucky, southern West Virginia and southern Indiana. This stock has been crushed by the bears so far in 2012, with shares off by over 60%. If you take a look at the chart for James River Coal, you'll see that this stock has been doing nothing but downtrending for the last six months, with shares dropping from $6.25 to its recent low of $1.68 a share. During that massive move lower, shares of JRCC have been consistently making lower highs and lower lows, which is bearish technical price action. That said, the stock has now started to rebound off its recent lows, and it's now challenging both its 50-day moving average of $2.41 and some near-term overhead resistance at $2.57 a share. Traders should now look for long-biased trades in JRCC if it can manage to trigger a break out above both its 50-day at $2.41 a share, and above that overhead resistance level of $2.57 a share with high volume. Look for volume off a sustained move or close above those levels that hits near or above its three-month average action of 2,350,330 shares. If that breakout triggers soon, then JRCC could easily setup to spike back toward its next major overhead resistance level at $3.85 a share. At last check, shares of JRCC have hit an intraday high today of $2.67 a share and volume is already hit 1.7 million shares. Just this morning, the company reported a smaller-than-expected quarterly loss of $25.8 million, or 74 cents per share, versus a net income of $800,000, or 2 cents per share, from a year earlier. The company said the market for power-generating coal was showing signs of a recovery following massive industry-wide cutbacks in production.