Another under-$10 bio therapeutic player that's starting to trend within range of triggering a major breakout trade is Dynavax Technologies (DVAX), which discovers and develops novel products to prevent and treat infectious and inflammatory diseases. This stock has been hit hard by the sellers so far in 2013, with shares off sharply by 55%.

If you take a look at the chart for Dynavax Technologies, you'll notice that this stock has been trending inside of a big range for the last three months and change, with shares moving between $1.10 on the downside and $1.46 on the upside. This large consolidation pattern for DVAX could mean that this stock is under accumulation by the bulls, since the bears have been unable to push the stock out of this range and take it to new lows. Shares of DVAX are now starting to spike back above its 50-day moving average of $1.25 a share with decent upside volume. Volume so far on Thursday has already registered 1.6 million shares versus its three-month average action or 1.81 million shares. This move is starting to push DVAX within range of triggering a major breakout trade.

Market players should now look for long-biased trades in DVAX if it manages to break out above some key overhead resistance levels at $1.29 to $1.32 a share, and then once it takes out more resistance at $1.46 to $1.50 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 1.81 million shares. If that breakout hits soon, then DVAX will set up to re-test or possibly take out its next major overhead resistance level at $1.70 a share. Any high-volume move above $1.70 a share will then give DVAX a chance to re-fill some of its previous gap down zone from June that started at $2.60 a share.

Traders can look to buy DVAX off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $1.10 a share. One can also buy DVAX off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.