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 Primed to Trade Higher

If you take a look at the chart for Ceres, you'll see that this stock has been trending sideways for the past month and change, with shares moving between $3.43 on the downside and $4.27 on the upside. This sideways action is coming after shares of CERE plunged from $9.50 a share to $3.43 a share, during the months of July to late November. Traders should now look for a high-volume move above the upper-end of its recent range to trigger a near-term breakout trade.

Market players should now look for long-biased trades in CERE if it manages to take out some near-term overhead resistance levels at $4.19 to $4.50 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 48,945 shares. If that breakout hits soon, then CERE will set up to re-test or possibly take out its next significant overhead resistance levels at $5.50 to $5.62 a share. Any high-volume move above those levels will then put $6.16 to $7 a share into focus for shares of CERE.

Traders can look to buy CERE off any weakness and then simply use a stop that sits right around some key near-term support at $3.73 to $3.61 a share. One could also buy CERE off strength once it takes out those breakout levels with volume and then simply use a stop that sits right around $3.73 a share.


One final under-$10 name that's trending very close to triggering a major breakout trade is Zogenix (ZGNX), which is a pharmaceutical company, engaged in the commercializing and developing products for the treatment of central nervous system disorders and pain. This stock has been hit hard by the sellers so far in 2012, with shares off by 36%.

If you take a look at the chart for Zogenix, you'll notice that this stock recently gapped down big from $2.36 a share to its recent low of $1.11 a share with heavy downside volume. Following that move, shares of ZGNX have started to rebound sharply and trend higher towards its current price of $1.43 a share. That move is quickly pushing ZGNX within range of triggering a major breakout trade. That trade will hit once ZGNX manages to take out its gap down day high of $1.44 a share with high volume.

5 of 6

Select the service that is right for you!

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

  • 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