Another under-$10 stock hat looks poised for higher prices is BPZ Resources ( BPZ), which is focused on the exploration, development and production of oil and natural gas in Peru and Ecuador. This stock is down modestly so far in 2012, with shares off by around 9%. If you take a look at the chart for BPZ Resources, you'll see that this stock has been downtrending hard from its April high of $4.64 to its recent low of $2.01 a share. During that downtrend, shares of BPZ were consistently making lower highs and lower lows, which is bearish technical price action. That said, the stock has now started to move in a sideways trading pattern for the last month, between $2.20 on the downside and $2.60 on the upside. A move outside of that range will likely setup the next major trend for BPZ. >>9 Oil Stocks With Hot Prospects Market players should now look for long-biased trades in BPZ once it triggers a break out above some near-term overhead resistance levels at $2.60 to $2.73 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 1.3 million shares. If that breakout triggers soon, then BPZ has a great chance to re-test or possibly take out its next significant overhead resistance levels at $3.04 to $3.25 a share. If $3.25 gets taken out with volume, then BPZ could easily re-test its April high of $4.64 a share. Traders can look to buy BPZ off any weakness and simply use a stop that sits just below $2.20 a share. One could also buy off strength once BPZ clears $2.60 to $2.73 a share, with a stop that's right below its 50-day moving average of $2.35 a share. I would add to either position if BPZ takes out $3.25 with high volume.