5 Under-$10 Stocks Due to Surge
Another under-$10 name that's trending very close to triggering a major breakout trade is DRDGold (DRD), which is engaged in the exploration, extraction, processing, and smelting of gold in South Africa. This stock has been trending bullishly for the last six months, with shares up 16%.
If you take a look at the chart for DRDGold, you'll notice that this stock has been uptrending strongly for the last four months, with shares soaring from a low of $5.35 to its recent high of $7.89 a share. During that uptrend, shares of DRD have been mostly making higher lows and higher highs, which is bullish technical price action. Also during that run, the upside volume for DRD have been tracking in bullish. Shares of DRD are now starting to bounce right off its 50-day moving average of $7.30 a share and it's quickly moving within range of triggering a major breakout trade.
Market players should now look for long-biased trades in DRD if it manages to break out above some near-term overhead resistance levels at $7.62 to $7.89 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 55,605 shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its 52-week high of $8.16 a share. Some possible upside targets off any move into new 52-week high territory above $8.16 a share are $9 to $10 a share.Traders can look to buy DRD off any weakness and then simply use a stop that sits right around its 50-day at $7.30 or right near its next major support level at $7.10 a share. One could also buy DRD off strength once it takes out those breakout levels with volume and then simply use a stop that sits just below its 50-day at $7.30 a share.
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