One more under-$10 stock that's trading within range of a near-term breakout trade is TearLab ( TEAR), an in-vitro diagnostic company engaged in commercializing a proprietary tear testing platform that enables eye care practitioners to test for highly sensitive and specific biomarkers using nanoliters of tear film. This stock has been skyrocketing so far in 2012, with shares up over 210%. On Wednesday, Canaccord Genuity imitated coverage on this stock with a buy rating and a price target of $6 per share. That upgrade spark a solid rally for TearLab after the stock closed up 8.6% on heavy volume. If you take a look at the chart for TearLab, you'll notice that this stock is trending within a range for the past two months, with shares moving between $3.00 on the downside and $3.80 on the upside. Shares of TEAR have just started to recapture its 50-day moving average of $3.35 a share with heavy upside volume, and its quickly moving within range of triggering a near-term breakout trade. Traders should now look for long-biased trades in TEAR once it manages to break out above some near-term overhead resistance levels at $3.66 to 3.80 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 91,080 shares. If that breakout hits soon, then TEAR will have a great chance of re-testing or possibly taking out its next major overhead resistance levels at $4.35 to $4.88 a share. Traders can look to buy TEAR off weakness and simply anticipate that breakout, with a stop below its 50-day at $3.35 or down near $3 a share. One could also get long off strength TEAR clears $3.66 to $3.80 with high volume, and then simply use a stock near its 50-day at $3.35 a share. Keep in mind that TEAR is a favorite target of the shorts, since its current short interest as a percentage of its float is 7.5%. Any breakout over $3.66 to $3.80 should spark a solid short-covering rally that moves TEAR within range of its 52-week at $4.88 a share. 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.