5 Stocks Under $10 With Big Upside Potential

QuickLogic

One more under-$10 stock that's starting to trigger a breakout trade today is QuickLogic (QUIK), 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 moving average 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 Canadian Solar (CSIQ), Asset Acceptance Capital (AACC) and Allos Therapeutics (ALTH), 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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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.

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