Another under-$10 stock that's trending within range of triggering a near-term breakout trade is Vringo ( VRNG), which provides products for mobile video entertainment and personalization. This stock has jumped higher during the last three months, with shares up 28.5%.

If you take a look at the chart for Vringo, you'll notice that this stock is just starting to trend back above its 50-day moving average of $3.25 a share, which is technically bullish action. This move is quickly pushing shares of VRNG within range of triggering a near-term breakout trade.

Market players should now look for long-biased trades in VRNG if it manages to break out above some near-term overhead resistance levels at $3.35 a share to its 200-day moving average at $3.52 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 4.6 million shares. If that breakout hits soon, then VRNG will set up to re-test or possibly take out its next major overhead resistance levels at $3.83 to $4.42 a share. Any high-volume move above $4.42 will then put $5 to $5.73 into range for shares of VRNG.

Traders can look to buy VRNG off any weakness to anticipate that breakout and then simply use a stop that sits close to some near-term support at $3.04 a share. One can also buy off strength once VRNG takes out those breakout levels with volume and then simply use a stop that sits just below its 50-day moving average of $3.25 a share. I would add to either position once VRNG takes out $3.83 to $4.42 a share with volume.

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