One under-$10 name that's trending very close to triggering a near-term breakout trade is Affymetrix ( AFFX), which is engaged in developing, manufacturing and selling products and services for genetic analysis to the life science research and clinical healthcare markets. This stock has been trending lower for the last six months, with shares off by 19.8%.

If you take a look at the chart for Affymetrix, you'll notice that this stock has been trending sideways for the last three months, with shares moving between $3.72 on the upside and $2.96 on the downside. That sideways trading pattern came after the stock gapped down with big volume last October from around $4.50 a share. Shares of AFFX have recently started to trend back above its 50-day moving average of $3.26 a share and it's quickly moving within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in AFFX if it manages to break out above some near-term overhead resistance levels at $3.62 to $3.72 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 681,000 shares. If that breakout hits soon, then AFFX will set up to re-fill its previous gap down zone from last October that started near $4.50 a share. Any high-volume move above $4.50 to $4.61 would then put $4.80 to $5.20 within range for shares of AFFX.

Traders can look to buy AFFX off any weakness to anticipate that breakout and then simply use a stop that sits just below its 50-day moving average of $3.26 a share. One could also buy AFFX off strength once it clears those breakout levels with volume and then simply use a stop that sits just below $3.40 a share.

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