Another under-$10 name that's trading very close to triggering a near-term breakout trade is Gulf Resources ( GURE), which is engaged in the manufacturing and trading of bromine and crude salt and the manufacturing and selling of chemical products used in oil and gas field exploration, oil and gas distribution, oil field drilling, wastewater processing, papermaking chemical agents and inorganic chemicals. This stock has been hammered by the bears so far in 2012, with shares down by over 30%. If you take a look at the chart for Gulf Resources, you'll notice that this stock was stuck in a nasty downtrend from May until late July, with shares dropping from over $2 to its recent low of 98 cents per share. During that downtrend, shares of GURE were mostly making lower highs and lower lows, which is bearish technical price action. That said, shares of GURE have now started to stabilize and trend sideways between $1 and $1.33 a share. A move outside of that sideways trading pattern will likely setup the next major trend for GURE. Market players should look for long-biased trades in GURE if it can manage to trigger a break out above some near-term overhead resistance levels at $1.24 to $1.33 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 98,866 shares. If that breakout triggers soon, then GURE will have a great chance of re-testing or possibly taking out its next major overhead resistance levels at $1.48 to $1.73 a share. Traders can look to get long GURE off weakness, and simply use a stop that sits just below its 50-day moving average of $1.12 a share. One could also buy GURE off strength once it starts to take out $1.24 to $1.33 a share with high volume, and then simply use a stop just below today's low of $1.15 a share.