An under-$10 stock in the oil and gas complex that's setting up to trigger a near-term breakout trade is Lone Pine Resources ( LPR), an independent oil and gas exploration, development, and production company with operations in Canada within the provinces of Alberta, British Columbia, Quebec and the Northwest Territories. This is another stock that's been hammered by the sellers so far in 2012, with shares off by 75%. >>5 Takeover Targets to Buy Before Wall Street Finds Out If you take a look at the chart for Lone Pine Resources, you'll see that this stock bottomed at a low of $1.09 a share in August after falling from over $5 a share from the previous months. Following that low, shares of LPR have started to rebound strong to a recent high of $1.86 a share. During that rebound, shares of LPR have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed LPR within range of triggering a near-term breakout trade. Market players should now look for long-biased trades in LPR once it manages to trigger a break out above some near-term overhead resistance levels at $1.68 to $1.86 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 802,580 shares. If that breakout triggers soon, then LPR will have an excellent chance of re-testing or possibly taking out its next major overhead resistance levels at $2.43 to $2.80 a share. Any high-volume move above $2.80 will put $3.50 to $3.80 into range for LPR. Traders can look to buy LPR off any weakness as long as it's trending above its 50-day at $1.48 a share with strong upside volume flows. You could also buy off strength once LPR takes out those breakout levels with volume, and simply use a stop just below its 50-day at $1.48 a share.