5 Stocks Under $10 Set to Soar
One final under-$10 name that's trending very close to triggering a near-term trade is Forest Oil (FST), which is engaged in the acquisition, exploration, development, and production of natural gas and liquids mainly North America. This stock has been hit by the sellers during the last three months, with shares off by 12.9%.
If you take a look at the chart for Forest Oil, you'll notice that this stock has been trending sideways for the last two months, with shares moving between $6.06 on the downside and $7.35 on the upside. This stock has just started to bounce strongly off its 50-day moving average of $6.91 a share and it's quickly moving within range of breaking out above the upper-end of its sideways pattern.Traders should now look for long-biased trades in FST if it manages to break out above some near-term overhead resistance at $7.35 a share with high volume. Look for a sustained move or close above $7.35 a share with volume that hits near or above its three-month average action of 3.3 million shares. If that breakout hits soon, then FST will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day of $8.33 a share or at $9.12 to $9.32 a share. Traders can look to buy FST off any weakness and simply use a stop that sits just below some near-term support levels at its 50-day of $6.91 or near $6.75 a share. One could also buy FST off strength once it clears those breakout levels with volume and then simply use a stop that sits just below its 50-day at $6.91 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.
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