One under-$10 stock that's trading within range of triggering a near-term breakout trade is Zynga (ZNGA), which develops, markets and operates online social games as live services played over the Internet and on social networking sites and mobile platforms. This stock has been destroyed by the sellers so far in 2012, with shares down a whopping 63%.
If you take a look at the chart for Zynga, you'll see that this stock has been stuck in a nasty downtrend for the last six months, with shares plunging from over $14.48 to its recent low of $2.66 a share. During that downtrend, shares of Zynga consistently made lower highs and lower lows, which is bearish technical price action. That said, for the past few weeks ZNGA has held that $2.66 low and it's started trending sideways from $3.12 to $2.80 a share. That sideways trading pattern is now setting up ZNGA for a possible move into its gap down zone from late July that started near $5 a share.
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