U.S. Auto Parts Network
One under-$10 name that's trending very close to triggering a major breakout trade is U.S. Auto Parts Network (PRTS), which is a distributor of aftermarket auto parts and accessories. This stock has been destroyed the bears during the last six months, with shares off by a whopping 56%.
If you take a look at the chart for U.S. Auto Parts Networks, you'll see that this stock has been trending sideways during the last two months, with shares moving between $1.71 on the downside and $2.06 on the upside. Shares of PRTS are just starting to spike higher today and move within range of its 50-day moving average of $1.96 a share. The stock is also starting to trend close to breaking out above the upper-end of its recent sideways trading pattern.
Traders should now look for long-biased trades in PRTS if it manages to break out above some near-term overhead resistance levels at $1.92 to $1.99 a share and then once it clears more resistance at $2 to $2.06 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 37,810 shares. If that breakout triggers soon, then PRTS will set up to re-test or possibly take out its next major overhead resistance levels at $2.50 to its 200-day moving average of $3.23 a share.Traders can look to buy PRTS off any weakness to anticipate that breakout and then simply use a stop that sits just below some key near-term support at $1.71 a share. One could also buy PRTS off strength once it clears those breakout levels with volume and then simply use a stop that sits just below its 50-day moving average of $1.96 a share.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV