5 Stocks Under $10 Setting Up to Trade Higher
An under-$10 name in the gold and silver complex that looks poised for big upside from here is Almaden Minerals (AAU), which is engaged in the business of the acquisition, exploration and when warranted, development of mineral properties. This stock is off to a decent start in 2012, with shares up over 15% so far.
If you take a look at the chart for Almaden Minerals, you'll see that this stock had been trading within a sideways trading pattern for the last few weeks, between $2.36 on the downside and $2.69 on the upside. Shares of Almaden just broke out above that $2.69 level on decent volume. Now the stock is quickly approaching another major breakout if it can manage to take out some near-term overhead resistance levels.
Market players should look for long biased trades in AAU if this stock can manage to break out above some overhead resistance levels at $2.90 to $3.17 a share with high-volume. Look for volume on that move that's near or well above its three-month average action of 155,766 shares. If that breakout triggers soon, then look for AAU to trade back towards its next significant overhead resistance levels at $3.67 to $4.27 a share in the near future.If you buy AAU off of strength on a move over $2.90, then I would simply use a stop that's a few percentage points below that $2.90 breakout level, and maybe even down towards the last breakout level at $2.69 a share. Follow @stockpickr
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