This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

5 Stocks Under $10 Poised to Move Higher

Stocks in this article: TSRXTEARCASMTZYMNAK

Trius Therapeutics

One under-$10 name that's starting to set up for a big breakout trade is Trius Therapeutics (TSRX), a biopharmaceutical company focused on the discovery, development and commercialization of antibiotics for life threatening infections. This stock is off to a weak start in 2012, with shares off by around 25%.

If you take a look at the chart for Trius Therapeutics, you'll notice that this stock has been downtrending since last December, from a high of $8 to a recent low of $4.71 a share. During that downtrend, this stock consistently made lower highs and lower lows, which is bearish price action. That said, now the stock has started to make higher lows for the last month, and it's moving within range of triggering a near-term breakout.

>>5 Breakout Stocks to Trade for Gains

Market players should now look for long-biased trades in TSRX if this stock can manage to break out above some near-term overhead resistance at $5.42 a share with high-volume. Look for volume on that move that hits near or well above its three-month average volume of 270,649 shares. If TSRX can sustain a move and close over $5.42 a share, then it will also mean the stock has pushed back above a significant downtrend line that starts at around $5.85 a share. This could signal that a significant trend change is underway for TSRX from bearish to bullish.

If we can get a close with high-volume over $5.42, then this stock could easily be setting up to a make a run move back towards its 200-day moving average of $6.48 a share or possibly higher into the mid-7s. I would probably use some near-term support at $5 as a good reference point for a mental stop. If $5.42 is taken out, then watch for the stock to move above some more near-term resistant at $5.74 to $5.86 to increase the probability of that move to $6.48 or higher.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,828.24 +0.49 0.00%
S&P 500 2,067.56 -5.27 -0.25%
NASDAQ 4,791.63 +4.3130 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs