Global Geophysical Services

One under-$10 stock that's trending very close to trigger a major breakout trade is Global Geophysical Services ( GGS), which provides an integrated suite of seismic data solutions to the global oil and gas industry. This stock has smashed lower by the sellers, with shares off by 33% so far in 2013.

If you take a look at the chart for Global Geophysical Services, you'll notice that this stock recently crashed hard from its high of $4.73 to its 52-week low of $2.22 a share with heavy downside volume. Following that plunge, shares of GGS have started to stabilize and make higher lows with the stock now trading at around $2.60 a share. That move is quickly pushing shares of GGS within range of triggering a major breakout trade.

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Traders should now look for long-biased trades in GGS if it manages to break out above some near-term overhead resistance levels at $2.63 to $2.65 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 276,308 shares. If that breakout triggers soon, then GGS could explode to the upside and possibly trend back towards its 50-day moving average of $3.63 a share.

Traders can look to buy GGS off any weakness to anticipate that breakout and simply use a stop that sits just below some near-term support levels at $2.42 to $2.33 a share, or even around its 52-week low of $2.22 a share. One can also buy GGS off strength once it takes out those breakout levels with volume and then simply use a stop that sits just below $2.33 a share.

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