One more under-$10 stock that could be setting up for higher prices is Delcath Systems ( DCTH), a development-stage, specialty pharmaceutical and medical device company, focused on oncology, initially cancers in the liver. This stock has been hammered by the sellers, with shares down by over 37% so far in 2012. This company recently announced that it has submitted a new drug application to the FDA seeking approval for its proprietary chemosaturation system for use with melphalan hydrochloride in the treatment of patients with unresectable metastatic melanoma in the liver. If you take a look at the chart for Delcath Systems, you'll see that this stock was downtrending badly until June, with shares constantly making lower highs and lower lows, which is bearish technical price action. After ending that downtrend, shares of DCTH went on to form a triple bottom at $1.40 to $1.42 a share. Now the stock has started to form higher lows and trend back above its 50-day moving average of $1.73 a share. This move is quickly pushing DCTH within range of clearing a key downtrend line and breaking out. Traders should now look for long-biased trades in DCTH once it manages to trigger a breakout trade above some near-term overhead resistance levels at $2.13 to $2.24 a share, and then above more resistance at $2.43 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 1,258,870 shares. If that breakout triggers soon, then DCTH has a great chance of trading well north of $3 a share. Traders can now look to buy DCTH off weakness and simply anticipate that breakout. I would simply use a stop if you buy off weakness that sits just below its 50-day moving average of $1.73 a share, or even around some key near-term support at $1.61 a share. If you get long of weakness, then add to the position once DCTH takes out some of those overhead resistance levels with high volume. To see more hot under-$10 equities, check out the Stocks Under-$10 Setting Up To Explode portfolio on Stockpickr. -- Written by Roberto Pedone in Winderemere, Fla.