This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

4 Stocks Under $10 With Big Upside Potential

Stocks in this article: BRCD AMRN SHOR LEI

Lucas Energy

One more under-$10 stock that's starting to trigger a breakout trade today is Lucas Energy (LEI), an independent oil and gas company based in Houston, with approximately 12,500 gross acres of oil and gas leases in South Texas primarily in the Gonzales County and Wilson County, Texas. This stock has been trending lower so far in 2011, with shares off by around 11.5%.

If you take a look at the chart for Lucas Energy, you'll see that shares of this oil player dropped big from its July high of $3.30 a share to a recent low of $1.04 a share. After printing that low, the stock has started to rebound sharply towards its current price of $2.10 a share. That big rebound now sets up LEI for a breakout trade if the stock can manage to clear a few overhead resistance levels.

Traders should now watch LEI to break out above $2.15 and $2.25 on high volume. Look for volume that's tracking in close to or above its three-month average volume of 219,642 shares. Volume today has already registered over 610,000 shares with the stock trading up over 10%. This high-volume move today is a good sign that LEI could be under accumulation and setting up to trend higher.

If you see a sustained move and close over $2.15 to $2.25, then look for the stock to take out its 200-day moving average of $2.53 with volume. If we see all of these overhead resistance levels taken out to the upside, then look for a big spike higher in this stock potentially back towards $3.30 to $4.00 a share.

One could be a buyer of this stock off any noticeable weakness and simply use a mental stop at around $1.80 or $1.73 (its 50-day) a share. One could also just buy strength and get long above $2.15 to $2.25, and then add again above $2.53. If you buy off strength use a mental stop a few percentage points below $2.15.

To see more hot under-$10 stocks, check out the Stocks Under-$10 Setting Up to Trade Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.
5 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs