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
TheStreet Open House

5 Under-$10 Stocks Set to Soar

Cell Therapeutics

Another under-$10 stock that's nearing a major breakout is Cell Therapeutics (CTIC). This company develops, acquires and commercializes treatments for cancer. This stock has had a rough go of it in 2011 with shares off by over 45%.

If you take a look at the chart for Cell Therapeutics, you'll see that this stock recently gapped down from over $1.30 a share to under $1.15 a share. After that gap down, the stock continued to trend lower and hit a recent low of $1.01 a share. That said, the stock is spiking up sharply today on big volume and is flirting with a move over its 50-day moving average of $1.14 a share. Often when a stock spikes back above its 50-day moving average with volume, it then experiences a much larger spike higher in the near future.

Market players should now watch for a breakout trade to trigger for CTIC if the stock can manage to sustain a high-volume move and close above some near-term overhead resistance at $1.20 a share. Volume so far today has already registered over 3.2 million shares, which is well above is three-month average action of 1.3 million shares. The stock has touched $1.17 a share today, so look for a close over $1.20 to signal that CTIC wants to refill some of that recent gap down.

One could be a buyer off strength and get long on a high-volume move over $1.20. I would simply use a mental stop just below today's low of $1.03 a share in case the breakout fails. You could also buy off any weakness today with the same mental stop. Target a run back toward $1.48 to $1.53 (200-day), or possibly much higher if the bulls jump into this name big in the coming days or weeks.

Keep in mind that CTIC is heavily shorted with around 12.5% of their tradable float currently sold short by the bears. Any move over $1.20 with volume should spark a decent short-squeeze.

3 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

Brokerage Partners

Rates from

  • 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