This Day On The Street
Continue to site
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

5 Under-$10 Plays Primed to Pop

GT Advanced Technologies

One under-$10 stock that's trending very close to triggering a near-term breakout trade is GT Advanced Technologies (GTAT), which is a global provider of polysilicon production technology, crystalline ingot growth systems and related photovoltaic manufacturing services for the solar industry. This stock has been hammered by the sellers during the last three months, with shares down by 35%.

If you take a look at the chart for GT Advanced Technologies, you'll notice that this stock has been downtrending badly for the last five months, with shares plunging from its high of $7.09 to its recent low of $2.82 a share. During that downtrend, shares of GTAT have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of GTAT have started to rebound off that $2.82 low and move back above its 50-day moving average of $3.33 a share. That move is quickly pushing GTAT within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in GTAT if it manages to break out above some near-term overhead resistance levels at $3.55 to $3.81 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 3,707,820 shares. If that breakout triggers soon, then GTAT will set up to re-test or possibly take out its next major overhead resistance levels at $4.97 to $5.27 a share. Any high-volume move above those levels will then put $6.25 to $7 into range for shares of GTAT.

Traders can look to buy GTAT off any weakness to anticipate that breakout and simply use a stop that sits right around some near-term support at $3.07 a share. One could also buy off strength once GTAT clears those breakout levels with volume and then simply use the same stop that sits right below its 50-day moving average of $3.34 a share.

Traders should also keep in mind that GTAT is a favorite target of the short sellers, since its current short interest as a percentage of its float is a whopping 30.2%. If that breakout triggers soon, then we could easily see an epic short-squeeze develop for GTAT.
2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
GTAT $0.50 -2.08%
JVA $3.71 0.00%
PIP $2.38 0.00%
PRTS $3.24 0.00%
SIFY $1.21 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs