Another under-$10 stock that's moving within range of triggering a breakout trade is
(PNX - Get Report). This company provides life insurance and annuity products through third-party distributors, supported by wholesalers and financial planning specialists employed by it. This stock is up nicely so far in 2012, with shares registering a 33% gain.
If you take a look at the chart for Phoenix Companies, you'll notice that this stock has been uptrending strong for the past six months, soaring from its low in October at 97 cents per share to its recent high of $2.69 a share. This stock recently pulled back off that $2.69 high and tagged its 200-day moving of $1.91 a share, where buyers stepped back into the stock. Now PNX has moved back above its 50-day
moving average of $2.16, and it's trading within range of triggering some near-term breakouts.
>>5 Buy-Rated Insurance Stocks for Long-Term Investors
Traders should look for long-biased trades in PNX if this stock can manage to break out above some near-term overhead resistance at $2.34 to $2.69 a share with high volume. Look for volume on that move that's near or well above its three-month average action of 553,631 shares. If we get that action soon, then look for PNX to make a run at its next major overhead resistance level of $2.86 a share. A high-volume move above $2.86 will then set this stock up to make a large run back towards its 2010 high near $4 a share.
Market players should look for long biased trades in PNX as long as it's trending above its 50-day moving average of $2.15 and above those key breakout levels of $2.34 to $2.86 with strong upside volume flows. I would avoid this name from the long side if PNX is tending below those levels and below its 200-day moving average of $1.91 a share.