Traders should now look for long-biased trades in ARQL once it manages to break out above some near-term overhead resistance levels at $2.76 to $2.92 a share, and then once it takes out its 50-day moving average of $3 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 1,221,220 shares. If that breakout triggers soon, then ARQL could make an explosive move and re-fill some of that previous gap down zone from October. Some upside targets are $4.50 to $5 a share and possible even its 200-day at $5.66 a share.
Traders can look to buy ARQL off any weakness and simply use a stop that sits right around some key near-term support at $2.25 a share. One could also buy ARQL off strength once it takes out those breakout levels with high volume and then simply use a stop that sits just below $2.53 a share.
Another under-$10 name that's trading very close to triggering a near-term breakout trade is American Superconductor (AMSC), which is a provider of megawatt-scale solutions that lower the cost of wind power and enhance the performance of the power grid. This stock hasn't done much so far in 2012, with shares off by around 7%.If you take a look at the chart for American Superconductor, you'll see that this stock has been downtrending badly for the last month, with shares dropping from a high of $4.07 to a recent low of $2.40 a share. During that downtrend, shares of AMSC have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of AMSC have recently formed a double bottom at $2.40 to $2.44 a share and the stock is now moving within range of triggering a near-term breakout trade. Market players should now look for long-biased trades in AMSC once it manages to take out some near-term overhead resistance levels at $2.86 to $3.00 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 312,411 shares. If that breakout triggers soon, then AMSC will set up to re-test or possibly take out its next significant overhead resistance levels at its 50-day of $3.49 or its 200-day at $3.94 a share.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV