This company has a major catalyst on the horizon, since they'll hear from the FDA on Jan.17, 2013 for the possible approval of their drug Zelrix, which is designed to treat migraines.

If you take a look at the chart for NuPathe, you'll notice that this stock has been uptrending very strong for the past month and change, with shares soaring from a low of $2.47 to its recent high of $3.60 a share. During that uptrend, shares of PATH have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of PATH within range of triggering a major breakout trade.

Traders should now look for long-biased trades in PATH if it manages to break out above some near-term overhead resistance levels at $3.60 to $3.85 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 243,547 shares. If that breakout hits soon, then PATH will set up to re-fill some of its previous gap down zone from September that started at around $4.40 a share. Some possible upside targets off that breakout are $4.59 to its 2012 high of $5.10 a share. Any high-volume move above $5.10 a share could then push PATH towards $6 to $7 a share. Traders can look to buy PATH off any weakness and simply use a stop that sits just below its 50-day moving average of $3.22 a share. One could also buy PATH off strength once it takes out those breakout levels with high volume and then simply use a stop that sits just below its 200-day at $3.51 a share.

Ceres

Another under-$10 name that's trading very close to triggering a near-term breakout trade is Ceres ( CERE), which is an agricultural biotechnology company selling seeds to produce renewable biomass feedstocks that can enable the large-scale replacement of petroleum and other fossil fuels. This stock has been hammered by the bears so far in 2012, with shares off by 72%.

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