Response Genetics Another under-$10 stock that's setting up to trigger a breakout trade is Response Genetics ( RDGX), which is engaged in the research and development of innovative clinical diagnostic tests for cancer based on its proprietary technologies. This stock has been uptrending very strong for the last three months, with shares up a whopping 61%. If you take a look at the chart for Response Genetics, you'll notice that this stock is just starting to trend above its 50-day moving average of $1.20 a share and volume is spiking dramatically to the upside. This action is quickly pushing shares of RGDX within range of triggering a near-term breakout trade. Market players should now look for long-biased trades in RGDX once it breaks out above some near-term overhead resistance levels at $1.29 to $1.45 a share, and then once it clears $1.60 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 32,260 shares. If that breakout triggers soon, then RGDX will set up to re-test or possibly take out its next significant overhead resistance levels at $2 to $2.40 a share. Traders can look to buy RGDX off any weakness as long as it's trending above its 50-day moving average of $1.20 a share, or as long as it's trending above $1.10 a share. One can also buy off strength once RGDX takes out $1.29 to $1.45 a share with volume and then simply use a stop that sits near its 50-day at $1.20 a share. I would add to either position once RGDX clears $1.60 a share with volume. Arqule One under-$10 name that's trending very close to triggering a major breakout trade is Arqule ( ARQL), which is a clinical-stage biotechnology company engaged in the research and development of innovative cancer therapeutics. This stock has been hit hard by the bears so far in 2012, with shares down by over 50%. If you take a look at the chart for Arqule, you'll notice that this stock gapped down big in early October from $5 to $1.98 a share with massive downside volume. Following that move, shares of ARQL have entered a range bound trading pattern, with shares moving between $2.25 on the downside and $2.92 on the upside. Shares of ARQL are now starting to move within range of breaking out above the upper-end of its recent trading range.