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

DexCom

Another under-$10 name that's starting to trigger a big breakout today is medical equipment and supplies player DexCom (DXCM). This stock has been a loser in 2011 with shares off by over 30%.

If you take a look at the chart for DexCom, you'll notice that this stock plunged from its September high of $13.69 to a recent low of $6.75 a share hit in November. Since printing that low, the stock has started to firm up and ramp higher while shares are making higher lows, which is bullish. Now DXCM is starting to trigger a big breakout with shares moving above some near-term overhead resistance levels.

Traders should now watch DXCM to see if the stock can maintain a sustained high-volume move and close above $8.53 to $8.56 a share. This stock has already started to trend above those levels intraday with shares currently trading near $9.05. Look for volume at today's close that registers near or above its three-month average action of 707,829 shares to signal that this stock wants to trend significantly higher in the near future.

One could be a buyer of this stock off any noticeable weakness since the breakout has already started to happen. I would simply use a mental stop that's just below its 50-day moving average of $8.32 in case this breakout fails. I would then add to any long positions once DXCM takes out some near-term overhead resistance at $11.05 with volume. Target a run back toward $12.49 (200-day) or possibly $13.69 a share.

DexCom has a decent short interest since 9.1% of its tradable float is currently sold short by the bears. This breakout today, if it holds, could kickoff a much larger short-covering rally in the near future.

5 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,067.56 -30.89 -0.18%
S&P 500 2,002.28 -1.09 -0.05%
NASDAQ 4,598.1880 +17.9170 0.39%

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