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 Set to Explode Higher


Another under-$10 stock in the medical equipment and supplies complex that looks poised for some decent upside is Fonar (FONR - Get Report), which is engaged in the business of designing, manufacturing, selling and servicing magnetic resonance imaging scanners, which utilize MRI technology for the detection and diagnosis of human disease, abnormalities, other medical conditions and injuries. This stock has been skyrocketing so far in 2012, with shares up over 150%.

If you take a look at the chart for Fonar, you'll notice that this stock made a huge run in March and April after it broke out above $2.84 a share with high volume. That breakout set the stock off to the upside with shares tagging a high of $6.80 a share in a very short timeframe. Since hitting that high, shares of Fonar have pulled back to a recent low of $3.40 a share. That move pushed the stock back below its 50-day moving average of $3.92, but on Wednesday the stock recaptured that moving average after it closed up 13.4% to $4.30 a share with above-average volume.

>>7 Hot Stocks Turning Heads

Market players should now look for long-biased trades in FONR if it can manage to trigger a break out trade above some near-term overhead resistance at $5.00 to $5.28 a share with high-volume. Look for volume on a sustained move or close above those levels that register near or well above its three-month average action of 390,967 shares. If that breakout triggers soon, then FONR could make a huge move back towards that recent high of $6.80 a share, and possibly take that high out.

If you're in the bull camp on FONR, then one could anticipate the breakout and look to buy this stock off any noticeable weakness. I would use a stop right below its 50-day moving average of $3.92 a share, or right around that recent low of $3.40 a share if you want to give it more room. If you buy off weakness, I would then add to any long positions once its clears $5 to $5.28 with high-volume.
3 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
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
Only $49.95
14-Days Free
14-Days Free
ZLC $21.02 -0.66%
FONR $14.36 -1.58%
NGD $4.22 -6.01%
PRKR $2.97 0.68%
SGI $4.68 1.30%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs