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 Poised for Breakouts


One under-$10 name that looks ready to trigger a near-term breakout trade is Oncothyreon (ONTY), a clinical-stage biopharmaceutical company focused primarily on the development of therapeutic products for the treatment of cancer. This stock has been beaten-up by the sellers so far in 2012, with shares down by close to 50%.

If you take a look at the chart for Oncothyreon, you'll see that this stock gapped down big in March from over $8 to under $5 a share on monster volume. Following that massive move lower, this stock has continued to downtrend with shares hitting a recent low of $3.35 a share. During that downtrend, shares of Oncothyreon have consistently made lower highs and lower lows, which is bearish technical price.

That said, the stock has started to reverse that trend recently with shares now making higher lows and higher highs. This stock is now trading within range of triggering a near-term breakout trade.

>>22 Biopharma Stocks With Breakout Potential in 2012

Market players should now look for long-biased trades in ONTY if it can manage to trigger a breakout above some near-term overhead resistance at $3.99 to $4.20 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 683,880 shares. If we get that action soon, then ONTY could easily tag its next significant overhead resistance levels at $4.50 to $5.50 a share, or possibly even its 200-day moving average of $6.09 a share.

If you like the look of ONTY here, then you could buy it off weakness and simply use a stop around $3.50 a share. You could also buy it off strength and get long once it takes out $3.99 to $4.20 with volume. Keep in mind that a move over $3.99 will put ONTY back above its 50-day moving average of $3.94 a share which would be bullish technical price action. Traders should consider any sustained trend above its 50-day for ONTY as bullish price action.

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
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!
MITK $3.13 0.00%
ONTY $1.74 0.00%
RMBS $13.99 0.00%
AAPL $130.28 0.00%
FB $81.53 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