Another under-$10 stock that's trending within range of triggering a near-term breakout trade is OraSure Technologies ( OSUR), which develops, manufactures, markets and sells oral fluid diagnostic products and specimen collection devices using its proprietary oral fluid technologies. This stock has been hammered by the bears in 2013, with shares off sharply by 40%.
If you take a look at the chart for OraSure Technologies, you'll see that this stock has been downtrending badly for the last six months, with shares crashing lower from its high of $7.50 to its 52-week low of $4.24 a share. During that downtrend, shares of OSUR have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of OSUR have started to form a potential bottoming pattern, since the stock has found buyers below $4.30 a share for the past month. That action has OSUR trending within range of triggering a near-term breakout trade.Market players should now look for long-biased trades in OSUR if it manages to break out above some near-term overhead resistance levels at $4.62 to $4.63 a share and then once it clears more resistance at $5.05 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 406,291 shares. If that breakout triggers soon, then OSUR will set up to re-test or possibly take out its next major overhead resistance levels at $5.50 to $6. Any high-volume move above $6 to $6.15 will then put its next major overhead resistance levels at $6.75 to $7 into range for shares of OSUR. Traders can look to buy OSUR off weakness to anticipate that breakout and simply use a stop that sits right below its 52-week low of $4.24 a share. One can also buy OSUR off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage point from your entry point.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV