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5 Stocks Under $10 Set to Soar

DryShips

Another stock that looks ready to trigger a major breakout trade is DryShips (DRYS - Get Report), a holding company engaged in the ocean transportation services of drybulk cargoes and crude oil worldwide through the ownership and operation of drybulk carrier vessels and oil tankers and offshore drilling services through the ownership and operation of ultra-deepwater drilling units. This stock is off to a decent start in 2012, with shares up 18% so far.

If you take a look at the chart for DryShips, you'll notice that this stock was hit hard by the bears back in March, when shares plunged from over $3.75 to its recent low of $1.91 a share. During that sharp move lower, shares of DRYS were consistently making lower highs and lower lows, which is bearish price action.

That said, shares of DRYS have now entered a range bound trend for the past three months, with shares moving between $1.91 and $2.60 a share. A move outside of that range for DRYS will likely setup its next major trend.

Traders should now look for long-biased trades in DRYS if this stock can manage to break out above some near-term overhead resistance levels at $2.38 to $2.46 a share, and then once it takes out its 200-day moving average of $2.62 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 4,352,970 shares. If we get that action soon, then DRYS could easily re-test and possibly take out its next major overhead resistance levels at $3.28 to $3.60 a share.

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SYM TRADE IT LAST %CHG
JRCC $0.00 0.00%
DRYS $0.74 0.00%
EXEL $3.11 0.00%
NG $3.67 0.00%
ROSG $3.92 0.00%

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