This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

5 Stocks Under $10 Set to Soar

Stocks in this article: SBSADATESKYWMCHXASTX

Jiayuan.com International

Another under-$10 stock in the personal services complex that's setting up to trend higher is Jiayuan.com International (DATE), an online dating platform in China. This stock is off to a weak start in 2012, with shares off by around 17%.

If you take a look at the chart for Jiayuan.com International, you'll see that this stock has been downtrending hard for most of the year, with shares dropping from close to $8 a share to a recent low of $3.60 a share. During that sharp move lower, shares of Jiayuan.com International have been making lower highs and lower lows, which is bearish technical price action. That said, the stock has now rebounded off that $3.60 low and started to trend higher to sideways. That move has pushed DATE within range of triggering a near-term breakout trade.

>>5 Stocks to Buy and Hold for True Value

Traders should now look for long-biased trades in DATE if it can manage to trigger a breakout trade above some near-term overhead resistance at $5.02 a share with high-volume. Look for volume on a sustained move or close above $5.02 that registers near or above its three-month average action of 70,694 shares. If we get that action soon, then DATE will have little resistance until $5.45 to $6.00 a share. Any high-volume move over $6 could mean DATE is ready to fill a previous gap-down that takes this stock back towards $7.25 to $7.50 a share.

If you're in the bull camp on DATE, then one could anticipate the breakout and look to buy this stock off weakness and simply use a stop that's a few percentage points below its 50-day moving average of $4.77 a share. You could even go all the way down to $4.55 a share, since that's where the stock has found big-time buying interest during the past month. One could also just get long off strength once DATE takes out $5.02 with high-volume. I would still use a stop around the 50-day if you buy off strength.

3 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs