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 Higher

Stock quotes in this article: DARA, QRM, ALC, AVNR, TEAR, RGEN

Dara Biosciences

One under-$10 stock in the biotechnology and drugs complex that's trading very close to triggering a breakout trade is Dara Biosciences (DARA), a specialty pharmaceutical company focused on the development and commercialization of oncology treatment and supportive care pharmaceutical products. This stock has been hit hard by the bears during the last six months, with shares down by over 50%.

If you take a look at the chart for Dara, you'll notice that this stock has moved into a sideways trading pattern for the last two months, after it came out of a nasty downtrend from $2.77 to its recent low of 62 cents per share. That sideways trading pattern how has DARA trending between 65 cents on the downside and 77 cents on the upside. Shares of DARA have just started to move above 77 cents per share with high volume, and it now looks poised to trigger another major breakout trade.

>>22 Biopharma Stocks With Breakout Potential in 2012

Market players should now look for long-biased trades in DARA once it breaks out above some near-term overhead resistance at 85 cents to 96 cents per share and then once it takes out more resistance at 98 cents per share with high volume. Look for a sustained move or close above those levels with volume that tracks in close to or above its three-month average action of 73,579 shares. If that breakout triggers soon, then DARA will have a great chance of re-testing and possibly taking out its next major overhead resistance levels at $1.14 to $1.40 a share. That $1.14 area is DARA's 200-day moving average, so $1.40 is very achievable once $1.14 is taken out with volume.

Traders can now look to buy DARA off any weakness to anticipate that breakout, and simply use a stop that either sits right below its 50-day moving average of 72 cents per share, or around more support near 68 cents per share. One could also buy off strength once DARA takes out 85 to 98 cents per share with volume, and then simply use a stop at around 77 cents per share.

2 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 16,723.50 -81.21 -0.48%
S&P 500 1,932.82 -13.34 -0.69%
NASDAQ 4,386.9370 -35.1480 -0.79%

Brokerage Partners

Rates from

  • 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