One more under-$10 stock that traders should put on their trading radar is Complete Genomics (GNOM), a life sciences company that has developed and commercialized a DNA sequencing platform. This stock has been annihilated by the bears during the last six months, with shares off by over 70%.
If you take a look at the chart for Complete Genomics, you'll notice that this stock has plunged from its August high of over $11 to its recent low of $2.57 a share. Since hitting that low, the stock has started to rebound sharply to its current price of around $4 a share. This rebound now has the stock close to triggering a bullish trade if the stock can manage to close a key technical level with volume.
Market players should now watch GNOM to trigger a bullish setup if the stock can sustain a high-volume move and close above its 50-day moving average of $3.83 a share. Look for volume that's tracking in close to or above its three-month average action of 368,467 shares. At last check, volume today has already hit over 500,000 shares, with the stock up over 7% at $4. If we see a close over $3.83 today and near the daily highs, then this stock could be setting up to trend back towards $4.68 to $5.60 a share or possibly even higher.You could be a buyer of this stock off any weakness and simply use a mental stop that's a few percentage points below $3.83 a share in case this move fails. I would then add to any long positions if GNOM takes out $4.68 with high-volume. Once again this is another stock with a notable short interest since 8% of the tradable float is currently sold short by the bears. Any high-volume close over the 50-day could easily set this stock up for a big spike higher due to the stock's low float of 17.55 million shares and decent short interest. To see more hot under-$10 stocks, 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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