This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Stocks Under $10 Poised to Move Higher

Keryx Biopharmaceuticals

An under-$10 name in the biotechnology and drugs complex that's quickly approaching a big breakout trade is Keryx Biopharmaceuticals (KERX - Get Report), a biopharmaceutical company focused on the acquisition, development and commercialization of pharmaceutical products for the treatment of cancer and renal disease. This is one of the hottest stocks so far in 2012 with shares up over 88%.

If you take a look at the chart for Keryx Biopharmaceuticals, you'll that this stock has been solidly in a monster uptrend since it bottomed in December at $2.27 a share. Since tagging that bottom, the stock has soared and consistently made higher lows and higher highs, which is bullish price action. That move has now pushed KERX within range of triggering a major near-term breakout trade.

Traders should now look for long biased trades in KERX if this stock can manage to break out above some near-term overhead resistance levels at $4.80 to $5.12 a share with high-volume. Look for volume on that move that's near or well above its three-month average action of 2,078,550 shares. At last check, volume on Thursday registered over 4.14 million shares and the stock hit a daily high of $4.94 before closing at $4.78 a share. A sustained high-volume move and close above $4.80 to $5.12 should set this stock up for some sizable upside.

Traders should look for long-biased trades as long as KERX is trending above $5.12 with strong upside volume flows. If we get that action soon, then look for KERX to quickly re-test its next significant overhead resistance levels at $5.55 to $5.91 a share. Then any high-volume move above $5.91 will put even more key overhead resistance at $6.67 a share into play, so you can see that there's some big upside here if these breakouts trigger soon.

This stock sports an extremely large short interest as a percentage of its float at 16.5%. That means a monster short-squeeze could easily get setoff if some of those breakout levels are taken out soon with volume. That said, I would avoid long trades in KERX if the stock is trending below $4.80 with strong downside volume flows.

Kervyx shows up on recent a list of the 10 Best-Performing Stocks in Three-Year Bull Market.

5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
CIS $2.03 0.00%
KERX $5.96 9.56%
PNX $37.05 0.11%
RGEN $27.38 2.78%
TRX $0.50 27.62%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs