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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Under $10 Setting Up to Soar

Stocks in this article: STP INFN FOLD UEC ASTI

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.

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