Document Security Systems

One under-$10 name that's trending within range of triggering a near-term breakout trade is Document Security Systems ( DSS), which is engaged in fraud and counterfeit protection for all forms of printed documents and digital information. It holds numerous patents for optical deterrent technologies that provide protection of printed information. This stock has been off to a decent start in 2013, with shares up 13.3%.

If you take a look at the chart for Document Security Systems, you'll notice that this stock has recently started to spike back above its 50-day moving average of $2.29 a share with heavy upside volume. That move is quickly pushing shares of DSS within range of triggering a near-term breakout trade.

>>3 Stocks Looking to Break Out

Traders should now look for long-biased trades in DSS if it manages to break out above some near-term overhead resistance levels at $2.59 to $2.60 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 48,098 shares. If that breakout triggers soon, then DSS this stock will set up to re-test or possibly take out its next major overhead resistance levels at $2.90 to its 200-day moving average at $3.06 a share. Any high-volume move above $3.06 will then put 3.22 to $3.60 into range for shares of DSS.

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