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

KIT Digital

Another under-$10 name in the computer services complex that's trading very close to triggering a major breakout is KIT Digital (KITD). Through its operating subsidiaries, KIT Digital provides enterprise clients an end-to-end technology platform for managing IP-based video assets across the browser, mobile device and Internet protocol television IPTV set-top box-enabled television sets. This stock is off to a rough start in 2012, with shares off by around 54%.

If you take a look at the chart for KIT Digital, you'll see that this stock has been stuck in a nasty downtrend for the last four months, with shares dropping from a high of $12.65 to a recent low of $2.64 a share. During that sharp move lower, shares of KITD have consistently made lower highs and lower lows, which is bearish technical price action.

>>4 Loser Stocks Poised for Big Rebounds

That said, the stock has started to bounce strong off that low of $2.64 with shares now trading just under $4 a share. That bounce is quickly pushing KITD within range of triggering a near-term breakout trade.

Market players should now look for long-biased trades in KITD if it can manage to trigger a breakout above some near-term overhead resistance at $4.20, and then above a recent gap-down day high of $5 a share with high-volume. Look for volume off a sustained move or close above those levels that register near or above its three-month average action of 1.7 million shares. If we get that action soon, then KITD will look even more bullish if it takes out its 50-day moving average at $5.12 a share with volume. This stock could easily spike back towards $7 a share or higher if all those levels get taken out to the upside with heavy volume.

I would look to buy KITD off strength once it takes out $4.20 with volume, and then add once it blasts above $5 to $5.12 a share with volume. Once could simply use a stop just a few percentage points below $4.20 if that breakout triggers, just in case KITD isn't ready to trend higher.

I also featured KIT Digital yesterday in " 7 Stocks Under $10 Soaring Higher."
5 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
MITK $8.02 -0.37%
ONTY $1.15 -1.71%
RMBS $11.22 -1.71%
AAPL $93.24 -0.41%
FB $117.81 -0.21%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs