This Day On The Street
Continue to site
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

5 Stocks Under $10 Set to Soar

PharmAthene

Another under-$10 name in the biotechnology and drugs complex that's trading within range of a near-term breakout trade is PharmAthene (PIP - Get Report), a biodefense company engaged in the development and commercialization of medical countermeasures against biological and chemical weapons. This stock is off to a decent start in 2012, with shares up over 15% so far.

If you take a look at the chart for PharmAthene, you'll notice that this stock gapped up and spiked huge in early June from around $1.21 a share to a high of $1.84 a share. Following that sharp move higher, shares of PharmAthene then went on to pullback hard and hit a near-term low of $1.31 a share. Now the stock has started to gain some buying momentum again with PIP moving back above its 50-day moving average of $1.43 a share. This stock is also starting to flirt with taking out its 200-day moving average of $1.47 a share.

>>22 Biopharma Stocks With Breakout Potential in 2012 Traders should now look for long-biased trades in PIP if it can manage to trigger a break out above some near-term overhead resistance at $1.53 to $1.57 a share with high-volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 423,573 shares. If we get that action soon, then PIP will have a great chance of re-testing and possibly taking out its next major overhead resistance levels at $1.68 to $1.70, and at $1.84 to $1.89 a share. If all those levels get taken out with volume, then PIP will be free to clear $2.10 a share, and after $2.10 there's very little overhead resistance until $2.40 to $3.35 a share.

If you're bullish on PIP, then one could buy off weakness and simply use a stop right below its 50-day moving average of $1.43 a share. There's some pretty solid near-term support at $1.40 and at $1.31 a share as well that traders can key off of. One could also just buy off strength once $1.53 to $1.57 are taken out with volume, then add above $1.89 to $2.10 a share if the upside volume continues to track in strong. Use a stop just below the 200-day at $1.47 a share if you get long off strength.

This stock is pretty popular among short-sellers. The current short interest as a percentage of the float for PIP is rather high at 13.4%. This makes PIP a great short-squeeze candidate if it can manage to enter breakout territory soon.
4 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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
ECYT $5.16 0.00%
GALE $1.64 0.00%
ISR $1.39 0.00%
LXRX $8.44 0.00%
PIP $1.69 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs