An under-$10 stock in the communications services complex that looks posed to trigger a big-time breakout trade is Vonage Holdings (VG), a provider of communications services connecting people through broadband devices worldwide. This stock is off to a weak start in 2012, with shares off by around 14%.
If you take a look at the chart for Vonage Holdings, you'll see that this stock has been trending range-bound for the past two months, with shares moving between $1.70 on the downside and $2.10 on the upside. Shares of Vonage have found buying interest repeatedly over the last month near $1.70 to $1.64 a share. This stock then moved back above its 50-day moving average of $1.85 a share, pulled back and re-tested its 50-day, and has now spiked higher again towards some near-term overhead resistance levels. This action has pushed shares of Vonage within range of triggering a near-term breakout trade.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV