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

Astex Pharmaceuticals

Another under-$10 name that looks ready to break out here is drug developer Astex Pharmaceuticals (ASTX), which engages in the discovery and development of small molecule therapeutics with a focus on oncology and hematology. This stock is off to a decent start in 2012, with shares up around 12%.

If you take a look at the chart for Astex Pharmaceuticals, you'll notice that this stock recently formed a double bottom chart pattern at around $1.57 to $1.58 a share in May. After making that bottom, shares of Astex Pharmaceuticals have started to uptrend strong, with shares mostly making higher lows ad higher highs, which is bullish technical price action. That move has pushed ASTX within range of triggering a major breakout trade.

>>5 Health Care Stocks Setting Up to Break Out

Traders should now look for long-biased trades in ASTX if it can manage to trigger a break out trade above some near-term overhead resistance at $2.17 a share, and then above some past resistance at $2.20 a share with high-volume. Look for a sustained move or close above those levels on volume that's near or above its three-month average action of 380,606 shares. If we get that action soon, then ASTX could have some major upside towards $2.95 a share, or possibly higher. That move will likely happen if ASTX moves into its previous gap-down above $2.60 a share.

One could be a buyer of ASTX off weakness to anticipate the breakout, and simply use a stop right below some major near-term support at $2 a share. You could even put the stock right below its 50-day moving average of $1.82 a share if you want to give it more room. One could also just buy off strength and get long above $2.17 to $2.20 once those levels are taken out with high-volume. I would simply use a stop a few percentage points below those levels if you get long off strength.

4 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 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

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