Another under-$10 stock that looks poised for higher prices is
(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.