An under-$10 name in the electronics and controls complex that could be gearing up to spike higher is Exide Technologies (XIDE), a provider of stored electrical energy solutions, and is a manufacturer and supplier of lead-acid batteries for transportation and industrial applications worldwide. This stock is making longs very happy so far in 2012 since shares are up over 30% so far.
If you take a look at the chart for Exide Technologies, you'll notice that this stock gapped down big last November from around $4.50 to under $3 a share. The stock then went on to print a new 52-week low at $2.22 a share. After hitting that low, the stock reversed from a downtrend to an uptrend with shares now making higher lows and higher highs. This recent uptrend in XIDE has now pushed the stock into breakout territory since it has cleared some near-term overhead resistance levels at $3.27 to $3.32 a share.
If you're bullish on XIDE, then you could be a buyer of this stock on a sustained high-volume move or close above $3.32 and then $3.60 a share. At last check, XIDE has already taken out $3.32 so watch for a move or close over $3.60 either today or in the near future. That $3.60 level is important because it sits right around the gap down day high. Once $3.60 is taken out with high-volume, then XIDE can start to fill some of that gap back towards $4.50 a share. Look for volume that's near or well above its three-month average action of 1.14 million shares.This is yet another name with a decent short interest, since the bears are short 7% of the tradable float on XIDE. Those shorts are going to get nervous once XIDE moves back that gap down day high, so the short-squeeze potential her is high if we clear $3.60 with volume. To see more hot under-$10 stocks, including Coffee Holding (JVA), Pacira Pharmaceuticals (PCRX) and Sequans Communications (SQNS), 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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