An under-$10 stock in the communications services complex that looks posed to trigger a big-time breakout trade is Vonage Holdings (VG - Get Report), 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.
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