One final under-$10 name in the coal complex that's trading within range of a major breakout trade is Arch Coal ( ACI). This company is a coal producer that sells its coal to power plants, steel mills and industrial facilities. This stock has been hammered by the bears so far in 2012, with shares down a whopping 50%. If you take a look at the chart for Arch Coal, you'll notice that this stock recently came out of its downtrend that took shares lower from $14 to $5.16 a share. That move out of its downtrend, has now seen shares of Arch Coal trend sideways between $6.42 and $7.78 a share. A high-volume move outside of that sideways trading pattern soon should setup the next major trend for ACI. Since this stock is trending so close to the upper-end of that range, the probably is high that an explosive move higher is setting up for ACI. >>10 Profitable and Oversold Stocks Ready to Move Higher Traders should now look for long-biased trades in ACI once it manages to trigger a breakout trade above some near-term overhead resistance levels at $7.68 to $7.76 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 14 million shares. If that breakout triggers soon, then ACI has a great chance of re-testing or possibly taking out its next major overhead resistance levels at $8.45 to $10.71 a share. In fact, I think ACI will tag its 200-day moving average of $10.70 a share if that breakout triggers soon. Traders can now look to buy ACI off weakness and simply anticipate that breakout. I would look to use a stop that sits around $6.56 to $6.42 a share if you get long of weakness. One could also get long off strength once ACI clears those breakout levels with volume, and simply use a stop at around $7 to $6.80 a share. Keep in mind that ACI is a heavily-shorted stock, since its current short interest as a percentage of its float is 22.5%. This stock has big short-squeeze potential if that breakout triggers soon, so make sure to have this on your breakout trading radar.