One under-$10 biopharmaceutical player that's starting to move within range of triggering a big breakout trade is Oncothyreon ( ONTY), which develops and markets synthetic vaccines and small molecules that treat cancer patients. This stock hasn't done much so far in 2013, with shares down modestly by 3.9%.

If you take a look at the chart for Oncothyreon, you'll notice that this stock has been trending sideways inside of a consolidation chart pattern for the last month and change, with shares moving between $1.63 on the downside and $1.95 on the upside. Shares of ONTY have been finding some buying interest of late right above its 50-day moving average of $1.73 a share. This stock is now starting to push within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern.

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Traders should now look for long-biased trades in ONTY if it manages to break out above some near-term overhead resistance levels at $1.93 to $1.95 a share and then once it takes out more resistance at $1.98 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 689,364 shares. If that breakout triggers soon, then ONTY will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $2.12 a share to $2.70 a share.

Traders can look to buy ONTY off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $1.73 a share or around more support at $1.63 a share. One can also buy ONTY 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.

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