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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

5 Stocks Under $10 Set to Soar

Cimatron

One under-$10 name that's just starting to trigger a major breakout trade today is Cimatron (CIMT), which develops and distributes CAD/CAM software for the manufacturing industry. The company offers solutions for mold and die makers, as well as Axis production milling and turning. This stock is off to a hot start in 2013, with shares up a whopping 45%.

>>5 Huge Stocks Ready to Rocket Higher in April

If you take a look at the chart for Cimatron, you'll notice that this stock is bouncing strongly today right off some near-term support at $5.92 a share, and it's starting to rip sharply higher and break out above some near-term overhead resistance at $6.60 a share. If this breakout holds, then shares of CIMT could easily explode much higher from current levels.

Traders should now look for long-biased trades in CIMT if it manages to break out above some near-term overhead resistance at $6.60 a share and then once it clears its 50-day moving average of $7.80 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 492,887 shares. If that breakout triggers soon, then CIMT will set up to re-test or possibly take out its next major overhead resistance level at $8.95 a share. Any high-volume move above $8.95 will then put $11 to $12.88 into range for shares of CIMT.

Traders can look to buy CIMT off any weakness to anticipate that breakout and simply use a stop that sits right below $5.92 a share. One could also buy CIMT off strength once it clears those breakout levels with volume and simply use a stop that's a few percentage points below your entry point. I would add to either position if CIMT clears $8.95 a share with heavy upside volume.

This stock has explosive potential because the tradable float is low at 2.43 million shares and the short interest as a percentage of the float is high for CIMT at 10.7%. Make sure to have this name on your breakout trading radar.

Stock quotes in this article: CBMX, PPHM, SQNM, CIMT, PLX, ZQK 

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.
DOW 16,507.18 +5.53 0.03%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.9670 -34.4910 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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