5 Stocks Under $10 Set to Soar

Vringo

One under-$10 name that's trending very close to triggering a major breakout trade is Vringo (VRNG), which is engaged in developing software for mobile phones. It provides a platform that allows users to create, download and share mobile entertainment content in the form of video ringtones for mobile phones. This is one of the hottest stocks so far in 2012, with shares up over 280%.

If you take a look at the chart for Vringo, you'll notice that this stock has been uptrending strong for the past six months, with shares soaring from a low of 68 cents to a recent high of $4.51 a share. During that uptrend, shares of Vringo have mostly made higher lows and higher highs, which is bullish technical price action. Now this stock is pushing higher and trading within range of triggering a major breakout trade.

Traders should now look for long-biased trades in VRNG if it can manage to trigger a breakout above some near-term overhead resistance at $3.93 to $4.51 a share with high volume. Look for a sustained move or close above those levels with volume that's near or above its three-month average action of 2.3 million shares. If we get that action soon, then VRNG will enter new 52-week-high territory above $4.51 a share. That will set this stock up for a possible move to $6 a share or higher in the near future.

Keep in mind that VRNG will need to take out $4.51 with volume to have a chance of spiking significantly higher. That said, I would be looking to get long off a decent volume move through $3.93 to anticipate that move over $4.51.

I also included Vringo in my list of Facebook IPO Sympathy & Derivative Stock Plays.

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