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 Under-$10 Stocks Poised for a Breakout


One under-$10 name that's trading within range of a major breakout trade is Cardionet (BEAT - Get Report). This company provides continuous, real-time ambulatory outpatient management solutions for monitoring clinical information regarding an individual's health. This stock hasn't done much so far in 2012 with shares up just 6.7%.

If you take a look at the chart for Cardionet, you'll see that this stock has been destroyed by the sellers for the past three months, with shares dropping from a high of $3.44 to a recent low of $1.99 a share. During that plunge, shares of Cardionet have been making mostly lower highs and lower lows, which is bearish technical price action. That said, this stock has started to find some buying interest around $2 a share after it tested that price level twice and then bounced higher in the last few weeks. That action has now pushed BEAT within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in BEAT if it can manage to trigger a break out above some near-term overhead resistance at $2.36 a share with high-volume. Look for a sustained move or close above that level with volume that's near or above its three-month average action of 74,373 shares. If we get that action soon, then BEAT could easily bounce sharply higher and possibly take out its 50-day moving average at $2.69 and its 200-day moving average at $2.80 a share.

If you like the look of BEAT here, then you could buy it off weakness and simply use a stop around $2.04 a share. You could also buy it off strength and get long once it takes out $2.36 with volume. At last check, BEAT has hit an intraday high today of $2.31 and volume is tracking in very strong with over 150,000 shares traded.
2 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
BLDR $14.54 0.94%
BEAT $12.03 -0.74%
INSM $17.03 -7.90%
SGYP $6.15 -3.50%
TPLM $1.71 4.30%


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs