One under-$10 stock in the biotechnology and drugs complex that's trading within range of triggering a major breakout trade is Repligen ( RGEN), which engages in the manufacture and supply of biologic products used to manufacture biologic drugs. This stock is off to a hot start in 2012, with shares up over 37% so far.

If you take a look at the chart for Repligen, you'll see that this stock gapped down huge back in late April from over $7 to under $5 a share with heavy volume. Following that gap down, shares of RGEN went on to trend lower and hit a recent low of $3.72 a share. During that slide, shares of RGEN were consistently making lower highs and lower lows, which is bearish technical price action. That said, the stock has now formed a double bottom at $3.72 to $3.78 a share, and it's starting to make higher highs. This could be signaling a bullish trend change for RGEN.

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Traders should now look for long-biased trades in RGEN if it can manage to trigger a near-term breakout trade above $4.82 to $4.90 a share, and then above $5.14 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 195,062 shares. If that breakout triggers soon, then RGEN will have a great chance of re-filling some of that previous gap down from over $7 a share.

Traders should use some near-term support levels for RGEN at around $4.50 to its 50-day moving average of $4.27 a share, as possible stops if you buy off weakness. One could also just get long RGEN off strength once it clears those breakout levels with volume, and then simply use a stop just under $4.50 a share. Any high-volume move over $5.14 should be what sets RGEN off to the upside.

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