This Day On The Street
Continue to site
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


One more under-$10 name that's trending very close to triggering a major breakout trade is Pozen (POZN), which is a pharmaceutical development company that focuses on migraine treatment through the use of triptans and different delivery mechanisms. This stock has been downtrending over the last six months, with shares off by 24%.

If you take a look at the chart for POZN, you'll see that this stock has dropped sharply from its March high of $6.49 a share to its recent low of $4.55 a share. During that selloff, shares of POZN were consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of POZN have started to rebound off that $4.55 low with the stock hitting a recent high of $5.15 a share. That move is coming with expanded upside volume and now shares of POZN are quickly moving within range of triggering a major breakout trade.

Traders should now look for long-biased trades in POZN if it manages to break out above some near-term overhead resistance at $5.15 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 236,000 shares. If that breakout triggers soon, then POZN will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $5.66 to its 200-day moving average at $5.89 a share. Any high volume move above those key moving averages and then above $6.11 will put $6.50 into range for shares of POZN.

Traders can look to buy POZN off weakness to anticipate that breakout and simply use a stop just below some key near-term support levels at $4.65 to $4.55 a share. One can also buy off strength once POZN clears $5.15 with volume and then simply use a stop just below $4.65 a share.

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.


Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Madison, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including and . You can follow Pedone on Twitter at or @zerosum24.
6 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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
MM $0.00 0.00%
BLRX $0.92 -4.17%
POZN $3.79 -1.81%
REDF $0.41 13.89%
RAD $8.01 -0.25%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs