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: CALICURRSHUEPSSZYM

Solazyme

Another under-$10 stock that's just starting to trigger a major breakout trade here is Solazyme ( SZYM), which is in the business of transforming a range of low-cost plant-based sugars into high-value oils. This stock has been trending strong so far in 2013, with shares up by 21%.

This company just reported earnings on Wednesday, posting a loss that met Wall Street's expectations but coming up short on beating revenue expectations. Revenue decreased 50.59% to $6.7 million from the year-earlier quarter.

>>4 Stocks for Surging Natural Gas

If you take a look at the chart for Solazyme, you'll notice that this stock has been uptrending strong for the last month, with shares soaring higher from its low of $7.15 to its intraday high of $9.86 a share. During that uptrend, shares of SZYM have been mostly making higher lows and higher highs, which is bullish technical price action. That move has started to push shares of SZYM into breakout territory and back above its 200-day moving average of $9.35 a share.

Market players should now look for long-biased trades in SZYM if it manages to break out above some near-term overhead resistance levels at $9.50 to $9.90 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 action of 556,451 shares. If that breakout triggers soon, then SZYM will set up to re-test or possibly take out its next major overhead resistance levels at $12 to $13 a share.

Traders can look to buy SZYM off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $8.75 a share. One can also buy SZYM off strength once it clears those breakout levels with volume and then simply use a stop right below its 200-day moving average of $9.35 a share, or right below $9 a share.

This stock is very popular with the short-sellers, since the current short interest as a percentage of the float for SZYM is extremely high at 21.7%. This stock has big time short-squeeze potential, so make sure to put this on your breakout trading radar.

5 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 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

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