5 Stocks Under $10 Set to Soar

Advanced Micro Devices

Another under-$10 stock that's moving within range of triggering a near-term breakout trade is Advanced Micro Devices (AMD), which provides processing solutions for the computing and graphics markets. This stock has taken it on the chin during the last six months, with shares off by 58%.

If you take a look at the chart for Advanced Micro Devices, you'll notice that this stock has been uptrending strongly for the last month and change, with shares soaring from a low of $1.81 to its recent high of $2.57 a share. During that uptrend, shares of AMD have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed AMD within range of triggering a near-term breakout trade.

>>5 Under-$10 Stocks Due to Surge

Market players should now look for long-biased trades in AMD if it manages to break out above some near-term overhead resistance levels at $2.57 to $2.75 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 28.6 million shares. If that breakout triggers soon, then AMD will set up to re-test or possibly take out its next major overhead resistance levels at $3 to $3.25 a share. Any move above $3.25 will then put $3.50 to $4 into focus for shares of AMD.

Traders can look to buy AMD off any weakness as long as it's trending above its 50-day moving average of $2.19 a share I would simply use a stop that sits just below that level if you buy off weakness. One can also buy off strength once AMD clears those breakout levels with volume and then simply use a stop that sits just below some key near-term support at $2.25 a share.

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