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
TheStreet Open House

5 Stocks Under $10 Set to Soar

Coffee Holding

An under-$10 stock in the food processing complex that looks ready to trigger a near-term breakout is Coffee Holding (JVA), an integrated wholesale coffee roaster and dealer in the U.S. This stock has traded virtually flat so far in 2012, with shares up just 0.5%.

If you take a look at the chart for Coffee Holding, you'll notice that this stock has been crushed by the sellers in the last three months, with shares dropping from a high of $14.88 to a recent low of $6.50 a share. During that huge move lower, shares of Coffee Holding have consistently made lower highs and lower lows, which is bearish technical price action. That said, the stock has started to tend up in the last few week, since it has moved off that $6.50 low to its recent high of $7.93 a share. That move has pushed JVA within range of triggering a near-term breakout trade.

>>5 Stocks Insiders Love Right Now

Market players should now look for long-biased trades in JVA if it can manage to trigger a break out trade above some near-term overhead resistance at $7.93 to $8.25 a share with high-volume. Look for volume on a sustained move or close above those levels that hits near or above its three-month average action of 719,884 shares. If that breakout triggers soon, then JVA will have a good chance of filling some of a recent gap-down back towards $9 a share. If that gap gets filled, then JVA could easily spike back above its 50-day moving average of $9.07 a share and possibly hit $10 or its 200-day moving average of $10.33 a share.

If you're bullish on JVA, then one could anticipate the breakout and look to buy this stock off any noticeable weakness. I would use a mental stop at around $7.50 to $7.25 a share in case JVA isn't ready to rip to the upside here. Look to add to any long positions once JVA takes out its 50-day at $9.07 with high volume, and then above some past overhead resistance at $9.65 to $9.91 a share with volume.

3 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 17,295.57 +29.58 0.17%
S&P 500 2,012.86 +1.50 0.07%
NASDAQ 4,587.6920 -5.7330 -0.12%

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