Another under-$10 stock that's trending within range of triggering a near-term breakout trade is TrovaGene ( TROV), a development stage molecular diagnostic company that focuses on the development and marketing of urine-based nucleic acid tests for patient and disease screening and monitoring. This stock has been trending slightly off so far in 2013, with shares down by 9.6%.

If you take a look at the chart for TrovaGene, you'll notice that this stock has just started to break out above a key downtrend line with strong upside volume. Prior to TROV flirting with taking out its downtrend line, the stock was downtrending badly from $8.96 to its recent low of $5.09 a share. That downtrend has started to reverse, with shares of TROV entering an uptrend over the last month, with shares moving higher from $5.09 to its recent high of $6.69 a share. That move is quickly pushing TROV within range of triggering a near-term breakout trade.

Market players should now look for long-biased trades in TROV if it manages to break out above some near-term overhead resistance levels at its 50-day moving average of $6.63 a share and then above more resistance at $6.69 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 58,705 shares. If that breakout hits soon, then TROV will set up to re-test or possibly take out its next major overhead resistance levels at $7.38 to $7.40 a share. Any high-volume move above those levels will then put $8.54 to $8.96 into range for shares of TROV.

Traders can look to buy TROV off any weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $5.73 to $5.50 a share. One could also buy TROV off strength once it clears those breakout levels with volume and then simply use a stop right below $6 a share. I would add to either position once TROV takes out $7.38 to $7.40 a share with volume.

If you liked this article you might like

Lack of Catalysts Keeps Analysts Away From Pfizer

Read Scraps Pfizer Break-Up as Megadeals Escape Its Grasp

Allergan's Dealmaking Continues With Vitae Takeout

Will Pfizer Book Another Healthy Quarter?

Ardelyx Has Big Potential

Ardelyx Has Big Potential