One more under-$10 stock that's trending very close to triggering a near-term breakout trade is TransGlobe Energy (TGA - Get Report), which is engaged in the exploration for and the development and production of oil and gas in Egypt and Yemen. This stock has been hit hard by the sellers during the last six months, with shares off by 27%.
If you take a look at the chart for TransGlobe Energy, you'll see that this stock recently formed a double bottom at around $7.37 to $7.40 a share. The stock has started to bounce off that support area and it's now quickly moving within range of triggering a near-term breakout trade.
Traders should now look for long-biased trades in TGA if it manages to break out above its 50-day moving average of $8.41 a share with high volume. Look for a sustained move or close above $8.41 a share with volume that hits near or above its three-month average action of 98,180 shares. If that breakout triggers soon, then TGA will set up to re-test or possibly take out its next major overhead resistance levels at $9.32 to its 200-day moving average at $9.68 a share. Any high-volume move above those levels will then put $10.50 to $11 into range for shares of TGA.To see more hot under-$10 equities, check out the Stocks Under $10 Setting Up to Explode portfolio on Stockpickr. -- Written by Roberto Pedone in Winderemere, Fla.
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