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 Setting Up to Break Out

Uranerz Energy

Another under-$10 stock that looks poised for higher prices is Uranerz energy (URZ), an exploration stage company engaged in the acquisition, exploration and development of properties in the uranium sector. This stock has been under pressure so far in 2012, with shares down over 35% in the last six months.

If you take a look at the chart for Uranerz Energy, you'll see that this stock has been trading inside of a huge range for the past three months, with shares moving between $1.60 on the upside and around $1.20 on the downside. What's interesting here is that URZ has been making higher lows for the past two months as it has trended within that range. This price action, along with bullish volume flows, is telling me that the probably if an upside breakout is increasing as URZ nears that $1.60 level.

>>5 Oversold Stocks Ready to Bounce

Market players should now look for long-biased trades in URZ once it triggers a breakout above some near-term overhead resistance levels at $1.57 to $1.62 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 294,659 shares. If that breakout triggers soon, then URZ will have a great chance of re-testing or possibly taking out its 200-day moving average of $1.87 a share, or possibly even tagging more overhead resistance at $2.20 to $2.60 a share.

Traders can look to buy URZ off any weakness and simply use a stop that sits just below $1.40 a share. One could also buy off strength once URZ clears $1.57 to $1.62 a share, with a stop that's right below its 50-day moving average of $1.46 a share. I would add to either position once URZ takes out its 200-day at $1.87 with heavy upside volume.

3 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 17,265.99 +109.14 0.64%
S&P 500 2,011.36 +9.79 0.49%
NASDAQ 4,593.4250 +31.2360 0.68%

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