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 Due to Surge





Envivio

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.

RELATED LINKS:

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 CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

6 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 17,304.25 +38.26 0.22%
S&P 500 2,013.51 +2.15 0.11%
NASDAQ 4,587.9010 -5.5240 -0.12%

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