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: RGENXIDEMHRALXADCTHSVNT

Alexza Pharmaceuticals

Another under-$10 name in the biotechnology and drugs complex that looks ready to trigger a major breakout trade is Alexza Pharmaceuticals (ALXA), a pharmaceutical company focused on the research, development and commercialization of products for the acute treatment of central nervous system conditions. This stock has been hammered by the bears so far in 2012, with shares down by over 50%.

If you take a look at the chart for Alexza Pharmaceuticals, you'll see that this stock sold off hard recently from $4.99 to a low of around $2.90 a share. During that slide lower, shares of ALXA were consistently making lower highs and lower lows, which is bearish technical price action. Once ALXA found some support near $2.90 a share, the buyers stepped in with huge volume and the stock saw a one-day spike that took it to $4.30 a share. Now shares of ALXA are trending within range of triggering another major breakout trade.

Traders should look for long-biased trades in ALXA if it can manage to trigger a breakout above some near-term overhead resistance at $4.30 a share, and then above $4.87 to $4.99 a share with high volume. Look for volume off a sustained move or close above those levels that hits near or above its three-month average action of 356,088 shares. If that breakout triggers soon, then ALXA will have a great chance of filling some of its previous gap down from May that started at $7.60 a share.

Traders can look to get long ALXA off weakness, and simply use a stop right around its 50-day moving average of $3.57 a share. Once could also get long once it takes out $4.30 a share with decent volume, and then simply use a stop near today's low of $3.86 a share. Keep in mind that once ALXA movers over $4.30 it will break out above a key downtrend line, so the move to the upside could be very powerful if we get it with volume.

5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
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 17,195.42 +221.11 1.30%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.1380 +16.9120 0.37%

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