Another under-$10 stock that's starting to trend within range of triggering a near-term breakout trade is Sequenom ( SQNM), which is a molecular diagnostic testing and genetics analysis company which provides molecular diagnostic testing services. This stock is off to a rough start in 2013, with shares off by 13.8%.

>>3 Stocks Spiking on Big Volume

If you take a look at the chart for Sequenom, you'll notice that this stock has been trending sideways for the last three months, with shares moving between $3.80 on the downside and $4.70 on the upside. Shares of SQNM are starting to bounce off its 200-day moving average of $4.01 today and are quickly moving within range of triggering a breakout trade above the upper-end of its recent sideways chart pattern.

Market players should now look for long-biased trades in SQNM if it manages to take out its 50-day moving average of $4.31 a share and then once it breaks out above more overhead resistance levels at $4.69 to $4.70 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 volume of 3.56 million shares. If that breakout hits soon, then SQNM will set up to re-test or possibly take out its next major overhead resistance levels at $5.36 to $6 a share.

Traders can look to buy SQNM off any weakness to anticipate that breakout and simply use a stop that sits right around $3.80 a share. One can also buy SQNM off strength once it takes out those breakout levels with volume and then simply use a stop that sits right below its 200-day at $4.01 a share.

This stock is a favorite target of the short-sellers, since the current short interest as a percentage of the float for SQNM is very high at 33.1%. If that breakout triggers soon, then we could easily get a monster short-squeeze for SQNM, so make sure to keep this name on your breakout trading radar.

If you liked this article you might like

8 Stocks Under $10 to Trade for Big Gains

Insider Trading Alert - BV, WBA And CBMX Traded By Insiders

CombiMatrix Poised to Double -- or More

5 Stocks Under $10 Set to Soar

5 Stocks Poised for Breakouts