One name under $10 in the communications equipment complex that's worth watching here is ShoreTel (SHOR), a provider of business communication solutions. This stock is off by around 25% so far in 2011.
If you take a look at the chart for ShoreTel, you'll notice that this stock plunged from its July high of $10.84 to a recent low of $4.57 a share. After hitting that low, the stock has started to form a more bullish trend with shares making higher highs and higher lows. Shares of ShoreTel recently slipped back below its 50-day moving average of $5.75, but buyers have started to move into the stock just below that level at $5.50.
Market players should watch for SHOR to move back above its 50-day at $5.75 on high volume, to signal that the stock wants to make trend higher again. Look for volume on a move and close above the 50-day that clocks in close to its three-month average action of 493,252 shares. If see that action, then look for shares of SHOR to make a run at its next significant overhead resistance level of $6.97, or possibly much higher towards its 200-day moving average of $8.02.Once could be a buyer of this stock off any noticeable weakness and set a mental stop at around $5.20 a share, or use an even tighter stop at just under $5.45. You could also buy off strength and get long once the stock sustains a move and close above $5.75 on high-volume. Simply use a mental stop a few percentage points below $5.75 if you buy off strength. ShoreTel shows up on a list of 10 Tech Stocks With at Least 50% Upside.
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 + 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