An under-$10 name in the discount deals complex that's trading very close to triggering a near-term breakout trade is Groupon ( GRPN), a local e-commerce marketplace company that connects merchants to consumers by offering goods and services at a discount. This stock has been annihilated by the sellers so far in 2012, with shares down by over 75%.

If you take a look at the chart for Groupon, you'll notice that this stock has been downtrending badly for the last six months, with shares plunging from over $16 a share to its recent low of $4. During that downtrend, shares of GRPN have been consistently making lower highs and lower lows, which is bearish technical price action. That said, GRPN have now entered oversold territory since its current relative strength index reading is below 30. This stock has also started to find some buying interest near $4 a share. It's possible that a near-term bottom could be in, and GRPN is now setting up to rebound off of oversold territory.

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Market players should look for long-biased trades in GRPN if it can manage to trigger a break out above some near-term overhead resistance levels at $4.36 to $4.70 a share with high volume. Look for a sustained move or close above those levels with volume that tracks in close to or near its three-month average action of 10.8 million shares. If that breakout triggers soon, then GRPN could see a powerful bounce that takes it back towards its 50-day moving average of $6.54 a share, or possibly even higher towards $8 a share. Traders can look to get long GRPN off weakness, and simply use a stop that sits just below that major near-term support level at $4 a share. One could also get long once GRPN takes out $4.36 to $4.70 with volume, and simply use a stop just below Thursday's low of $4.14 a share.

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