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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Under $10 With Big Upside Potential

NetQin Mobile

An under-$10 computer services player stock that could also be setting up to trade higher is NetQin Mobile (NQ), a software-as-a-service provider of consumer-centric mobile Internet services focusing on security and productivity. This stock has been hammered lower by the bears this year, with shares off by over 50%.

If you take a look at the chart for NetQin, you'll see that this stock is jumping sharply today by around 8% to around $4.25 a share. The stock recently sold off from its September high of $6.97 a share to a recent low of $3.46 a share. That recent low violated some previous support at around $3.95 a share from back in June. That said, now NQ has traded back above that support zone, which leads me to believe that lots of stops were taken out before large traders moved back into the stock. Stops are often put in near old support levels, so it's not uncommon to see that price violated first before buyers step back in.

Market-players should watch for a breakout trade here if NQ can manage to move above some overhead resistance at $4.60 a share. A move above that level on strong volume should set this name up for a run back toward its 50-day moving average of $5.8 or possibly $7 a share. Look for volume to be tracking in close to or above its three-month average action of 208,400 shares.

One could be a buyer of this stock on any weakness and anticipate the breakout, or just wait for the breakout and then load up on some shares. I would use a stop just below $4 a share in case the bulls aren't ready to get long the stock here, or use a much tighter stop obviously if you're day trading it. It's worth mentioning that the recent bounce in the stock came off of an RSI reading below 30. The RSI is now 37, so there's tremendous upside from these oversold levels if buyers do step back in with some volume.

>>5 Breakout Stocks to Recoup September Losses

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