Neuralstem

Another under-$10 stock that's starting to trend within range of triggering a major breakout trade is Neuralstem ( CUR), which is engaged in the development and commercialization of treatments for central nervous system disease based on transplanting human neural stem cells and the use of small molecule drugs. This stock is off to a decent start in 2013, with shares up 17.4%.

If you take a look at the chart for Neuralstem, you'll notice that this stock has been uptrending strong for the last month, with shares moving higher from its low of $1 to its recent high of $1.29 a share. During that uptrend, shares of CUR have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CUR within range of triggering a major breakout trade.

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Market players should now look for long-biased trades in CUR if it manages to break out above some near-term overhead resistance levels at $1.29 to $1.40 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 319,875 shares. If that breakout hits soon, then CUR will set up to re-test or possibly take out its next major overhead resistance levels at $1.57 to $1.96 a share.

Traders can look to buy CUR off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $1.15 a share. One can also buy CUR off strength once it takes out those breakout levels with volume and then simply use a stop that sits right below $1.20 a share.

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