One final under-$10 stock that is nearing a major breakout is
, a global provider of value-added services, which facilitate the electronic exchange of documents and information between enterprises, their trading communities and their customers. This stock is off to a strong start in 2011, with shares up over 19%.
If you take a look at the chart for EasyLink Services, you'll see that this stock is gapping up today above both its 50-day and 200-day moving averages, which is bullish technical action. The stock is now quickly approaching a big breakout at around $5.12 a share. What I like about the setup here is that ESIC is trading up over 9% today on huge volume. Volume today has already registered over 650,000 shares, which is well above its three-month average action of 216,000 shares. Now all the stock needs is to close above some overhead resistance at $5.12 to trigger a potential bigger move to the upside.
One could be a buyer of this stock on any weakness, or simply wait for the breakout and buy off a strong move and close above $5.12 a share. I would simply use a stop just below the 50-day moving average of $4.63 a share, or much tighter if you're day trading this for a breakout. If we do get the breakout, then target a run back towards $6 a share or possibly higher.
To see more hot under-$10 stocks, including
OCZ Technology Group
(ANDS), check out the
Stocks Under-$10 Setting Up To Trade Higher
portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
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