One more under-$10 stock that's starting to trigger a breakout trade today is
(QUIK - Get Report)
, which develops and markets semiconductor solutions. This stock has been crushed by the bears in 2011, with shares off by over 58%. If you take a look at the chart for QuickLogic, you'll notice that this stock recently found some big buying support at $2.11 to $2.15 a share. After buyers stepped in to own shares at those levels, the stock has started to soar and has now triggered a big breakout above some overhead resistance levels. Those key levels the stock has now started to move some near-term overhead resistance at $2.39 and its 50-day
of $2.44 a share.
Traders should now watch for QUIK to sustain a move and close above $2.44 on high volume. Volume today has already registered 245,000 shares, which is well above its three-month average volume of 197,300 shares, so watch for a close on the stock above $2.44 to trigger a bullish trade. At last check, the stock is trading at $2.66, which is only a few cents off its daily high of $2.74. If we get that strong close with volume, then this stock has a great chance to trade back towards its 200-day moving average of $3.27 or possibly much higher.
You could be a buyer of this stock off any noticeable weakness and simply use a mental stop just below the 50-day at $2.44. I would then add to any long positions once QUIK moves back above its 200-day at $3.27 with volume. Target a run back toward its next significant overhead resistance level at $4.64 if the 200-day is taken out with volume in the coming days or weeks.
To see more hot under-$10 stocks like
Asset Acceptance Capital
, 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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