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 Stocks Under $10 Setting Up to Soar

Suntech Power Holdings

One under-$10 stock that's trading very close to some key breakout levels is solar energy player Suntech Power Holdings (STP). This stock is off to a monster start in 2012, with shares up around 40%.

If you take a look at the chart for Suntech Power, you'll notice that this stock has been crushed from its August high of $7.77 to its recent low of $1.70 a share. After hitting that low in October, this stock has started to trend higher and make higher lows, which is bullish price action. Now STP is approaching a major breakout level that's worth watching for higher prices.

Market players should put STP on their breakout trading radar if this stock can sustain a high-volume move and close above $3.31 to $3.44 a share. Look for volume on that's near or well above its three-month average action of 3.41 million shares, if those levels get taken out soon. If we get that action, then this stock could easily trend back towards its 200-day moving average of $5.35 a share.

If you're bullish STP, you could just wait for the breakout to trigger and buy the stock off strength. I would simply use a mental stop that's a few percentage points below $3.31 a share. You could also buy off weakness and simply use a mental stop that's right below $2.90 a share and anticipate the breakout.

It's worth pointing out that this stock has a high short interest since 9.4% of the tradable float currently sold short by the bears. If we see a high-volume move over $3.31 to $3.44 a share soon, then a monster short squeeze could easily kick off since it looks like the bears are defending those resistance levels.

2 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 17,172.68 -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 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