Magnum Hunter Resources
Another under-$10 stock that looks poised for higher prices is Magnum Hunter Resources (MHR - Get Report), an independent oil and gas company engaged in the exploration for and the exploitation, acquisition, development and production of crude oil, natural gas and natural gas liquids, primarily in the states of West Virginia, Ohio, Texas, Kentucky and North Dakota and in Saskatchewan, Canada. This stock is off to a slow start in 2012, with shares down by over 18%.
If you take a look at the chart for Magnum Hunter Resources, you'll notice that back in early May, this stock plunged from $6.45 to its June low of $3.55 a share with heavy volume. During that slide lower, shares of MHR were consistently making lower highs and lower lows, which is bearish technical price action. After hitting that $3.55 low, shares of MHR went on to enter a range bound trend, with shares moving between $3.42 on the downside and $4.48 on the upside. A move outside of that range will now likely setup the next major trend for MHR.