Another under-$10 stock that looks poised for higher prices is
, which engages in the exploration and development of base metals in the U.S. This stock has been hit hard by the bears so far in 2012, with shares down by over 35%.
If you take a look at the chart for NovaCopper, you'll notice that this stock recently pulled back off its highs of $2.92 to $2.75 a share to its recent low of $2.03 a share. That pullback has held a pattern of higher lows for NCQ as the stock is starting to find buying interest around its 50-day moving average of $2.17 a share. If NCQ can hold its 50-day and start to get some heavy upside volume flows, then it could easily setup to re-test its recent highs and trigger a major breakout trade.
Traders should now look for long-biased trades in NCQ as long as its trending above its 50-day at $2.17, and then once it breaks out above some overhead resistance levels at $2.75 to $2.92 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 volume of 228,136 shares. If that breakout triggers soon, then NCQ will have a great chance to re-test or possibly take out its next major overhead resistance levels at $3.45 to $4 a share.
Traders can look to buy NCQ off weakness with a stop that sits just below its 50-day at $2.17, or just below its recent low of $2.03 a share. I would look to add to this position once NCQ clears those breakout levels with heavy volume.