This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

5 Stocks Under $10 Set to Soar

Stocks in this article: SCMPATRSSNFCAENPHRBCNMELA

Enphase Energy

One under-$10 name that's trading within range of triggering a major breakout trade is Enphase Energy ( ENPH), which has pioneered a new inverter technology for the solar industry that increases energy production, simplifies design and installation, improves system uptime and reliability, and reduces fire safety risk. This stock has been on fire so far in 2013, with shares up sharply by 73%.

If you take a look at the chart for Enphase Energy, you'll notice that this stock has been uptrending strong for the last six months, with shares soaring higher from its low of $1.92 to its recent high of $6.70 a share. During that uptrend, shares of ENPH have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ENPH within range of triggering a major breakout trade.

>>5 Hated Earnings Stocks That Deserve Your Love

Traders should now look for long-biased trades in ENPH if it manages to break out above some near-term overhead resistance levels at $6.36 to $6.70 a share and then above some past resistance at $6.89 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 281,685 shares. If that breakout triggers soon, then ENPH will set up to re-test or possibly take out its next major overhead resistance levels at $7.35 to $8.50 a share.

Traders can look to buy ENPH off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $5.58 a share. One can also buy ENPH off strength once it clears those breakout levels with volume and then simply use a stop right below $6 a share.

This is another stock the bears love, since the current short interest as a percentage of the float for ENPH is pretty high at 10.1%. A solid short-covering rally could develop if ENPH breaks out soon, so make sure to have this name on your watch list.

4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
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 17,195.42 +221.11 1.30%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.1380 +16.9120 0.37%

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