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5 Under-$10 Stocks Due to Surge


One final under-$10 name that's trending very close to triggering a near-term breakout trade is Envivio (ENVI), which is a provider of IP video processing and distribution solutions that enable the delivery of high-quality video to consumers. This stock has been hit hard by the bears in 2012, with shares off by a whopping 80%.

If you take a look at the chart for Envivio, you'll notice that this stock has been trending sideways for the last two months, with shares moving between $1.42 on the downside and $1.89 on the upside. Shares of ENVI are now starting to bounce off some near-term support at $1.59 a share and it's quickly moving within range of breaking out above the upper-end of its recent range. Any high-volume move outside of its sideways trading pattern will likely lead to the next major trend for shares of ENVI.

Traders should now look for long-biased trades in ENVI if it manages to break out above its 50-day at $1.82 a share and then once it clears more overhead resistance levels at $1.87 to $1.89 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 102.500 shares. If that breakout hits soon, then ENVI will set up to re-test or possibly take out its next major overhead resistance levels at $2.29 to $2.43 a share. Any high-volume move above those levels will then put $2.75 to $3 a share into focus for shares of ENVI.

This stock has a huge gap that could get filled if it were to ever take out $3 a share, since ENVI plunged and gapped down back in August from $6 to below $2.50 a share with huge downside volume.

Traders can look to buy ENVI off any weakness and simply use a stop that sits right below some near-term support levels at $1.57 to $1.50 a share. One could also buy ENVI off strength once it clears those breakout levels with volume and then simply use a stop that sits right around $1.59 a share.

To see more hot under-$10 equities, check out the Stocks Under $10 Setting Up to Explode portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.


And if you haven't already done so, join Stockpickr today to create your own dividend portfolio. 

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including and . You can follow Pedone on Twitter at or @zerosum24.
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OSIR $5.87 0.00%


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