This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Under-$10 Stocks Showing Profit Potential

Active Network

One under-$10 stock that's trending very close to triggering a major breakout trade is Active Network (ACTV), which is provide applications that form an online network connecting a fragmented and diverse group of activity and event organizers with a large base of potential participants. This stock has been destroyed by the sellers so far in 2012, with shares off by 62%.

If you take a look at the chart for Active Network, you'll see that this stock gapped down in early November from over $9 to a low of $5.02 a share with massive downside volume. Following that move, shares of ACTV went on to hit a new 52-week low of $4.60 a share. The stock then proceeded to form a double bottom at $4.60 to $4.64 a share, and it has now started to rebound and move within range of triggering a major breakout trade. That breakout will hit once ACTV clears some near-term overhead resistance levels and its gap down day high of $6.39 a share.

Traders should now look for long-biased trades in ACTV once it manages to break out above some near-term overhead resistance levels at $5.32 to $5.66 a share and then once it takes out more overhead resistance levels at $5.87 to $6.39 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 1,155,670 shares. If that breakout hits soon, then ACTV will set up to re-fill some of its previous gap down zone that started above $9 a share. Some possible upside targets are its 50-day at $7.29 to $9 a share. Traders can look to buy ACTV off weakness as long as it holds its double bottom levels at $4.64 to $4.60 a share. I would use a stop just below those levels. You can also buy off strength once ACTV clears those breakout levels with volume and then simply use a stop at around $5 a share.

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs