Novatel Wireless Another under-$10 stock that's moving within range of triggering a major breakout trade is Novatel Wireless ( NVTL), which is a provider of wireless broadband access solutions for the worldwide mobile communications market. This stock has been hammered by the bears during the last six months, with shares down by 43%.

If you take a look at the chart for Novatel Wireless, you'll notice that this stock has been uptrending for the last month and change, with shares moving higher from its low of $1.17 to its recent high of $1.50 a share. During that uptrend, shares of NVTL have been mostly making higher lows and higher highs, which is bullish technical price action. Shares of NVTL have now started to trend back above its 50-day moving average of $1.39 with decent upside volume. That move is quickly pushing NVTL within range of triggering a major breakout trade.

Market players should now look for long-biased trades in NVTL if it manages to break out above some near-term overhead resistance levels at $1.45 to $1.50 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 356,243 shares. If that breakout hits soon, then NVTL will set up to re-test or possibly take out its next major overhead resistance levels at $1.80 to $1.86 a share. Any high-volume move above those levels will then put $2 to $2.09 into range for shares of NVTL.

Traders can look to buy NVTL off any weakness to anticipate that breakout and then simply use a stop that sits right around some key near-term support levels at $1.29 to $1.24 a share. One can also buy off strength once NVTL clears those breakout levels with volume and then simply use a stop that sits just below its 50-day moving average of $1.39 a share.

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