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
TheStreet Open House

5 Stocks Under $10 Triggering Breakouts

Frontline

Another under-$10 stock that looks ready to trigger a major breakout trade is Frontline (FRO), which is engaged mainly in the ownership and operation of oil tankers and oil/bulk/ore carriers, which are currently configured to carry dry cargo. This stock has been hammered by the bears in 2013, with shares off by 31%.

If you take a look at the chart for Frontline, you'll notice that this stock recently plunged badly from its high of $3.68 to its low of $1.81 a share with heavy downside volume. During that move, shares of FRO were consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of FRO have started to rebound off that $1.81 low to its recent high of $2.37 a share. This stock has been making higher lows during that rebound and it's quickly moving within range of triggering a major breakout trade.

Market players should now look for long-biased trades in FRO if it manages to break out above some near-term overhead resistance levels at $2.30 to $2.37 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 861,670 shares. If that breakout hits soon, then FRO could experience a powerful bounce higher that takes it back toward its 50-day moving average of $2.86 a share or back to its 200-day moving average at $3.49 a share.

Traders can look to buy FRO off any weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $2.06 to $1.92 a share. One could also buy FRO off strength once it clears those breakout levels with volume and then simply use a stop right below $2.06 a share.

3 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,201.90 -77.84 -0.45%
S&P 500 1,993.29 -17.11 -0.85%
NASDAQ 4,517.9780 -61.8110 -1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs