One under-$10 stock that looks ready to trigger a major breakout trade is Biodel ( BIOD), a specialty biopharmaceutical company focused on the development and commercialization of innovative treatments for diabetes. This stock is off to a monster start in 2013, with shares up around 80%. This biotech stock has a catalyst on the horizon, since the company plans to report top-line results for its lead product, the insulin treatment Biod-123, by the end of September 2013. >>3 Biotech Stocks to Watch for Breakout Trades If you take a look at the chart for Biodel, you'll notice that this stock has been trending sideways for the last month and change, with shares moving between $3.93 on the downside and $5.11 on the upside. Shares of BIOD have just started to break out above some near-term overhead resistance at $4.46 a share, and it's now moving within range of triggering a major breakout trade above the upper-end of its recent range. Traders should now look for long-biased trades in BIOD if it manages to break out above some near-term overhead resistance levels at $4.46 to its 52-week high at $5.11 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 304,856 shares. If that breakout triggers soon, then BIOD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $6 to $8 a share. Traders can look to buy BIOD off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $4.01 a share or below more support at $3.93 a share. One can also buy BIOD off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.