Another under-$10 name that's trending within range of triggering a major breakout trade is CapitalSource ( CSE), a commercial lender that provides financial products to small and middle market businesses nationwide and provides depository products and services to consumers. This stock is off to a strong start in 2013, with shares up 23%.

>>5 Rocket Stocks to Buy in June

If you take a look at the chart for CapitalSource, you'll notice that this stock is just starting to spike back above its 50-day moving average at $9.28 a share. Shares of CSE have been trending sideways inside of a consolidation pattern for the last month, with shares moving between $9.12 on the downside and $9.64 on the upside. A high-volume move above the upper-end of its recent range could trigger a major breakout trade for shares of CSE.

Market players should now look for long-biased trades in CSE if it manages to break out above some near-term overhead resistance levels at $9.52 to $9.64 a share and then once it takes out its 52-week high at $9.86 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 1.96 million shares. If that breakout triggers soon, then CSE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $14 to $16 a share.

Traders can look to buy CSE off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $9.12 a share. One can also buy CSE off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage point from your entry point.

If you liked this article you might like

Market Signals Change of Direction: Cramer's 'Mad Money' Recap (Monday 9/18/17)

U.S. Concrete, Alder Biopharmaceuticals: 'Mad Money' Lightning Round

Amazon Partner Plug Power's Earnings Miss Target, Shares Knocked Down 10%

These Two Stocks Could Be the Next to Sign a Deal Like Plug Power's With Amazon

Amazon Deal Sends Plug Power Shares Soaring