This Day On The Street
Continue to site
ADVERTISEMENT
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 Stocks Under $10 Set to Soar

Xoma

Another under-$10 name that's starting to trend into range of triggering a near-term breakout trade is Xoma (XOMA - Get Report), which is engaged in the discovery, development and manufacture of therapeutic antibodies and other agents designed to treat inflammatory, autoimmune, infectious and oncological diseases. This stock hasn't done much so far in 2013, with shares trading virtually flat.

If you take a look at the chart for XOMA, you'll notice that this stock has been trading in a tight consolidation pattern for the last two months, with shares moving between $2.37 on the downside and $3 a share on the upside. Shares of XOMA are just starting to push back above its 50-day moving average of $2.68 a share, and it's quickly moving within range of breaking out above a key downtrend line.

Market players should now look for long-biased trades in XOMA if it manages to break out above some near-term overhead resistance levels at $2.83 to $3 a share and then once it takes out more resistance at $3.10 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 549,387 shares. If that breakout triggers soon, then XOMA will set up to re-test or possibly take out its next major overhead resistance levels at $3.44 to $4 a share.

Traders can look to buy XOMA off any weakness to anticipate that breakout and simply use a stop that sits right around some near-term support levels at $2.46 to $2.37 a share. One could also buy XOMA off strength once it takes out those breakout levels with volume and then simply use a stop that sits just below its 50-day moving average of $2.68 a share. I would add to either position once this stock clears $3 to $3.10 with strong volume.
5 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
SKH $8.44 4.46%
MEIP $1.56 0.00%
ONTY $3.64 0.00%
SGMO $9.15 0.00%
XOMA $0.73 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs