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

Triangle Petroleum

One under-$10 name in the oil and gas complex that's trading within range of a major breakout trade is Triangle Petroleum (TPLM - Get Report). This is an oil and gas exploration and development company focused primarily on resource properties consisting mainly of unconventional oil and gas reserves. This stock is down about 9% so far in 2012.

If you take a look at the chart for Triangle Petroleum, you'll notice that the bears hammered this stock during the last three months, with shares plunging from a high of $8.26 to a recent low of $4.63 a share. During that massive slide lower, shares of Triangle Petroleum have mostly made lower highs and lower lows, which is bearish technical price action. That said, this stock just put in a near-term double bottom at $4.68 to $4.63 a share. Shares of TPLM are also now trending very close to triggering a major breakout trade.

Market players should now look for long-biased trades in TPLM if it can manage to trigger a breakout above its 50-day at $5.79 and its 200-day at $5.91, and then above some near-term overhead resistance at $5.95 a share with high-volume. Look for a sustained move or close above those levels on volume that hits near or well above its three-month average action of 485,105 shares. If we get that action soon, then TPLM could easily trend up toward its next significant overhead resistance levels at $6.89 to $7.60 a share.

If you buy TPLM off weakness, then I would simply use a stop at around today's low of $5.25 a share. I would rather play this name off strength though on a move above both its 50-day and 200-day moving averages with volume. At last check, TPLM has hit an intraday high today of $5.65 on volume of over 250,000 shares. Some of that strength today is due to a research report from Wunderlich Securities, which gave the stock a buy rating an $8 price target.

4 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
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!
BLDR $12.79 0.00%
BEAT $8.60 0.00%
INSM $23.25 0.00%
SGYP $4.01 0.00%
TPLM $5.51 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs