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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Under $10 Set to Soar Higher

Quest Rare Minerals

An under-$10 stock in the rare earth metals complex that looks poised for higher prices is Quest Rare Minerals (QRM), an exploration stage company that engages in the identification and discovery of rare earth deposits in Canada. This stock has been hammered by the sellers during the last six months, with shares down by over 50%.

If you take a look at the chart for Quest Rare Minerals, you'll see that this stock has been downtrending badly for the past six months, with shares plunging from over $3 a share to its recent low of $1.14 a share. During that downtrend, shares of QRM have consistently made lower highs and lower lows, which is bearish technical price action. That said, shares of QRM have recently formed a double bottom chart pattern after the stock found buying interest at around $1.14 to $1.15 a share. If that bottom holds, then QRM could now be setting up to trigger a major breakout trade.

>>5 Stocks With Big Insider Buying

Market players should now look for long-biased trades in QRM if this stock can manage to break out above some near-term overhead resistance at $1.41 to $1.45 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 121,405 shares. If that breakout triggers soon, then QRM will have a great chance of re-testing and possibly taking out its next significant overhead resistance levels at $1.81 to $2.20 a share. Keep in mind that any move above $1.41 will mean that QRM has recaptured its 50-day moving average, which would be bullish technical price action.

Traders can look to buy QRM off any weakness and simply use a stop that sits just below $1.15 to $1.14 a share. One could also buy off strength once it clears its 50-day at $1.41 with decent volume flows, and then simply use a stop near Wednesday's low of $1.22 a share.

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