This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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

Stocks in this article: ASTIURZIBIONCQLEICUR

Ibio

Another under-$10 stock that's moving within range of triggering a major breakout trade is Ibio (IBIO), a biotechnology company focused on commercializing its technology, the iBioLaunch platform, for the production of biologics, including vaccines and therapeutic proteins. This stock is off to a hot start so far in 2012, with shares up over 30%.

If you take a look at the chart for Ibio, you'll notice that this tock spiked up huge back in July from around 70 cents to $1.70 a share with bullish upside volume flows. After hitting $1.70, shares of IBIO went on to pullback to its current price near $1.10 a share. On Wednesday, IBIO started to trend higher and find buying interest right off both its 50-day at $1.06 and its 200-day at $1.07 a share. This move is now quickly pushing IBIO within range of triggering a major breakout trade.

>>4 Biotech Stocks Under $10 Making Big Moves

Traders should now look for long-biased trades in IBIO once it manages to break out above some near-term overhead resistance levels at $1.20 to $1.36 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 254,119 shares. If that breakout triggers soon, then IBIO will have a great chance of re-testing or possibly taking out its next major overhead resistance levels at $1.70 to $1.75 a share, or possibly even $1.95 to $2.30 a share.

Traders can look to buy IBIO off weakness with a stop that sits just below some major near-term support levels at $1.03 to 97 cents per share. One could also just buy IBIO off strength once it clears $1.20 to $1.36 a share with high volume, and then simply use a stop somewhere around its 50-day moving average of $1.06 a share.

4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 17,390.52 +195.10 1.13%
S&P 500 2,018.05 -2.75 -0.14%
NASDAQ 4,630.7410 +64.6030 1.41%

Brokerage Partners

Rates from Bankrate.com

  • 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