5 Stocks Under $10 Set to Soar Higher

AspenBio Pharma

Another under-$10 name that's trending within range of triggering a near-term breakout trade is AspenBio Pharma (APPY), a biomedical diagnostic company that develops products for human diagnostic and animal health therapeutic needs. This stock has been hammered by the bears so far in 2012, with shares down by over 65%.

If you take a look at the chart for AspenBio Pharma, you'll see that this stock recently spiked up huge from around $1.50 to just over $2 a share with monster upside volume. That spike also took APPY back above its 50-day moving average of $1.67 a share. Since that large spike, shares of APPY have started to trend sideways between a range of $1.80 to $2.05 a share. A move outside of that range will likely setup APPY for its next major trend. If that move is to the upside, then APPY could break out and get into a previous gap from back in June.

Market players should now look for long-biased trades in APPY if it can manage to trigger a breakout above some near-term overhead resistance levels at $2.05 to $2.09 a share, and then once it takes out $2.25 a share with high volume. Look for a sustained move or close above those levels with volume that tracks in close to or near its three-month average action of 103,088 shares. If that breakout triggers soon, then APPY will have a great chance to re-fill some of its previous gap that started back at around $3.36 a share.

Traders can look to get long APPY off weakness and simply use a stop that sits right around some near-term support at $1.80 a share. One could also buy APPY off strength once it clears $2.05 to $2.09 a share and then add to that position once $2.25 a share is taken out with volume. If you get long off strength, then use a stop at around $1.90 a share.

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