5 Stocks Under $10 Set to Soar

Monster Worldwide

Another under-$10 name that's trading very close to triggering a near-term breakout trade is Monster Worldwide (MWW), which provides global online employment solutions, with a presence in approximately 55 countries around the world. This stock has literally done nothing so far in 2012, with shares virtually flat.

If you take a look at the chart for Monster Worldwide, you'll see that this stock has been uptrending very strong for the last two months, with shares spiking higher from a low of $5.71 to $9.05 a share. During that uptrend, shares of MWW have been mostly making higher lows and higher highs, which is bullish technical price action. Shares of MWW have now pulled back off its recent highs, and it's started to bounce off its 50-day at $7.32 a share. That move is now pushing MWW within range of triggering a near-term breakout trade.

Market players should now look for long-biased trades in MWW if it can manage to trigger a break out above some near-term overhead resistance levels at $7.89 to $8.03 a share with high volume. Look for a sustained move or close above those levels with volume that hits close to or above its three-month average action of 3.45 million shares. If that breakout triggers soon, then MWW will setup to re-test or possibly take out its next major overhead resistance levels at $9.04 to $9.14 a share, or possibly even $9.63 to $10.40 a share.

Traders can look to get long MWW off weakness, and simply use a stop that sits right below its 50-day at $7.32, or even near some previous support at $7.05 a share. One could also buy MWW off strength once it clears $7.89 to $8.03 a share with volume, and then simply use a stop right below its 50-day.

« First ‹ Previous 1 2 3 4 5 6 Next › Last »