If you're looking for an under-$10 name in the energy complex, then take a look at energy services and smart grid solutions provider PowerSecure International (POWR). This stock has been off to a slow start in 2011, with shares off by over 25%. That said, the stock is soaring by over 20% today after the company reported strong third quarter results. Roth Capital also upgraded the stock today with a $6.50 price target due to those strong results and backlog.
If you take a look at the chart for PowerSecure International, you'll notice that this stock is just starting to break out today above some past overhead resistance at $4.60 and now $5.40 a share on heavy volume. Volume today is easily going to register above its three-month average action of 138,200 shares, since at last check it's already over 126,600 shares.
A sustained move and close above $5.40 should set this stock up for a monster run back towards the next significant overhead resistance levels at $7.50 a share, or possibly even higher.>>5 Big Stocks to Trade for Gains One could be a buyer of this stock off any weakness and simply use a mental stop that's just a few percentage points below $5.40 a share. I would then simply stop out of the trade if shares move below the 50-day moving average by a few percentage points. I would add any long position once the stock takes out its 200-day moving average of $6.39 on heavy volume. The current short interest as a percentage of the float for POWR is rather high at 9.5%. That's a pretty high short interest, so monitor this name for continued upside in the coming days and weeks. PowerSecure is one of TheStreet Ratings' top-rated scientific instrument stocks.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV