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TheStreet Open House

5 Stocks Under $10 Set to Soar Higher

Pozen

Another under-$10 name in the biotechnology and drugs complex that's trading very close to triggering a near-term breakout trade is Pozen (POZN), which develops products for the treatment of acute and chronic pain and other pain-related conditions in the U.S. This stock has been trending sharply higher so far in 2012, with shares up around 65%.

If you take a look at the chart for Pozen, you'll notice that this stock has been trending sideways between $6 and $6.90 a share for the past two months and change. Shares of POZN just recently started to trend back above its 50-day moving average of $6.46 s share with a slight uptick in volume flows. That move is now pushing POZN within range of breaking out above some near-term overhead resistance levels.

Traders should now look for long-biased trades in POZN once it manages to break out above some near-term overhead resistance levels at $6.79 to $6.90 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 145,334 shares. If that breakout triggers soon, then POZN will have a great chance of re-testing or possibly taking out its next significant overhead resistance levels at $7.55 to $8.12 a share.

Traders can look to buy POZN off weakness with a stop that sits just below its 50-day moving average of $6.46 a share. One could also buy POZN off strength once it clears $6.79 to $6.90 a share with volume, and then simply use a stop at around $6.60 a share.

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