Millennial Media

Another under-$10 stock that's starting to trade within range of triggering a near-term breakout trade is Millennial Media ( MM), which is an independent mobile advertising platform company. This stock has been crushed by the bears so far in 2013, with shares off by a whopping 50%.

If you take a look at the chart for Millennial Media, you'll notice that this stock has recently started to trend sideways in a consolidation pattern between $5.87 a share on the downside and $6.71 a share on the upside. This sideways chart pattern is coming after shares of MM downtrended badly from $10 to $5.87 a share. Shares of MM are now starting to move within range of triggering a near-term breakout trade.

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Market players should now look for long-biased trades in MM if it manages to break out above some near-term overhead resistance levels at $6.71 to $6.92 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 1.72 million shares. If that breakout hits soon, then MM will set up to re-test or possibly take out its next major overhead resistance levels at $7.37 to its 50-day moving average at $8.37 a share. Any high-volume move above its 50-day will then put $8.80 to $9.50 into range for shares of MM.

Traders can look to buy MM off weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support levels at $6.01 to $5.87 a share. Once can also buy off strength once MM takes out those breakout levels with volume and then use a stop that's a few percentage points below your entry point.

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