This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Under $10 Poised for Upside

Stocks in this article: EGT RTK VALV DSCO FRO

Shengkai Innovations

An under-$10 name in the fabricated products complex that's trading very close to triggering am major breakout is Shengkai Innovations (VALV), which engages in designing, manufacturing, and distributing ceramic valves and components for industrial use in the People's Republic of China. This stock hasn't done much so far in 2012, with shares up just 7.1%.

If you take a look at the chart for Shengkai Innovations, you'll see that this stock has been downtrending since it tagged a recent high of $2.89 back in February. During that move lower, shares of Shengkai Innovations have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock has now started to find some big-time buying interest over the past few weeks at around $1.04 to $1.13 a share. The bulls have also just pushed VALV within range of trigging a major breakout trade.

>>5 Rocket Stocks Worth Buying

Market players should now look for long-biased trades in VALV if it can manage to break out above some near-term overhead resistance levels at $1.41 (its 50-day) to $1.45 a share with high-volume. Look for a sustained move or close above those levels on volume that's near or well above its three-month average action of 411,238 shares. Volume on Thursday registered 1.59 million shares as VALV closed up 8% to $1.34 a share. That huge volume could be a prelude to a much bigger move in the future for VALV. If that breakout does trigger soon, then VALV could easily hit its next significant overhead resistance levels at $2.04 to $2.20 (its 200-day) a share very quickly.

Traders could get long VALV off of weakness and simply use a stop around some near-term support at $1.20 to $1.13 a share. Personally, I would rather buy the breakout as long as it comes with heavy volume. This stock clearly is garnering some interest here due to the big volume spikes, so keep it on your breakout trading radar.

4 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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