Zix

Another under-$10 stock that's quickly moving within range of triggering a major breakout trade is Zix ( ZIXI), which provides email encryption services. This stock has been booming to the upside so far in 2013, with shares up 37%.

If you take a look at the chart for Zix, you'll notice that this stock has just started to surge back above its 50-day moving average of $3.69 a share with decent upside volume. Volume on Wednesday registered 506,000 shares, which is just above its three-month average action of 443,108 shares. That move is quickly pushing shares of ZIXI within range of triggering a major breakout trade.

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Market players should now look for long-biased trades in ZIXI if it manages to break out above some near-term overhead resistance levels at $3.82 to its 52-week high at $3.94 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 443,108 shares. If that breakout triggers soon, then ZIXI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $4.50 to $5 a share, or even $5.50 a share.

Traders can look to buy ZIXI off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support levels at $3.60 to $3.55 a share. One can also buy ZIXI off strength once it clears those breakout levels with volume and then simply use a stop that sits just below its 50-day at $3.69 a share, or at around $3.60 a share.

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