5 Stocks Under $10 Setting Up to Soar

Ascent Solar Technologies

One more under-$10 stock that could be setting up here for an explosive move higher is Ascent Solar Technologies (ASTI), a development stage company formed to commercialize flexible photovoltaic modules using a technology. This stock is off to a booming start in 2012, with shares up over 50% coming into today.

If you take a look at the chart for Ascent Solar Technologies, you'll see that this stock has been on a rampage from when it hit a recent low of $0.36 a few weeks ago. After hitting that low, the stock has uptrended strong to its current price of around $0.65 a share. Now shares of ASTI are setting up to trigger an even bigger breakout if the stock can manage to take out some near-term overhead resistance levels.

Traders should now look for ASTI to take out some near-term overhead resistance at $0.60 and then its 50-day moving average of $0.64 with high-volume. At last check, volume today is already huge with over 655,000 shares traded versus its three-month average action of just 125,195 shares. The stock has also touched $0.68 today, so look for ASTI to clear near its daily highs to signal it wants to trend much higher.

You could be a buyer of ASTI off any weakness and simply use a mental stop that's a few percentage points below the recent breakout level of $0.60. I would target a run back towards $0.82 to $0.90 a share if ASTI can continue to trend above its 50-day with strong volume. It's even possible its 200-day moving average of $1.01 could be hit in the near future, if the price and volume action remain bullish.

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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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.

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