Sirius XM Radio
One under-$10 stock that's getting very close to triggering a breakout trade is Sirius XM Radio (SIRI), which is engaged in broadcasting music, sports, news, talk, entertainment, traffic and weather channels in the U.S. on a subscription fee basis through its two satellite radio systems. During the last six months, this stock is down by around 7%.
If you take a look at the chart for Sirius XM Radio, you'll notice that this stock recently moved back above its 200-day moving average of $1.89 a share with volume. The stock also broke out recently above some past overhead resistance at $1.92 to $1.95 a share with volume.
Traders should now watch SIRI for a near-term breakout trade if this stock can manage to sustain a high-volume move and close above $2.06 a share. Look for volume on a move and close above $2.06 that's near or well above its three-month average action of 53.7 million shares. If we get that action, then this stock should setup to re-test its next significant overhead resistance levels at $2.22 to $2.35 in the near future.If you're bullish on SIRI, then one could be a buyer off any weakness and simply use a mental stop that's just below its 200-day moving average of $1.89 a share. You could also buy off strength and get long once it closes over $2.06 with volume. It's worth noting that this stock has a decent short interest since 8% of the tradable float currently sold short by the bears. Since this stock has struggled for months to trade above $1.92 to $1.95 a share, this new found strength could be a precursor to a large short-squeeze in the coming days or weeks. Sirius shows up on recent lists of 5 Penny Stocks With Plenty of Reward and 10 Top Stocks Under $5 for 2012 Picked by Analysts.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV