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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Under $10 Set to Soar

Media General

One under-$10 name that's quickly moving within range of triggering a major breakout trade is Media General (MEG), a provider of news, information and entertainment across 18 network-affiliated television stations, digital media and mobile platforms, serving consumers and advertisers in strong local markets, primarily in the Southeastern U.S. This stock has been on fire so far in 2013, with shares up sharply by 115%.

Just last week, Media General announced a merger with privately-held Young Broadcasting and Warren Buffett's Berkshire Hathaway said it will hold 5.3% of the new Media General combined company.

>>5 Stocks Set to Soar on Bullish Earnings

If you take a look at the chart for Media General, you'll notice that this stock just recently pulled back off its recent high of $9.95 to $8.60 a share on lighter volume. I say "lighter volume" because shares of MEG saw a super-spike higher last week off the merger news from $7 to $9.95 a share on monster upside volume. So far this pullback has seen MEG hold above its 50-day moving average at $8.39 a share. This stock is now quickly moving within range of triggering a major breakout trade.

Traders should now look for long-biased trades in MEG if it manages to break out above some near-term overhead resistance levels at $9.95 to its 52-week high at $10.17 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 214,905 shares. If that breakout triggers soon, then MEG will set up to enter new 52-week high territory above $10.17, which is bullish technical price action. Some possible upside targets off that breakout are $13 to $15 a share, or possibly even north of $15 a share.

Traders can look to buy MEG off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $8.60 a share, or just below its 50-day at $8.39 a share. One can also buy MEG off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

This stock is a popular target of the short-sellers, since the current short interest as a percentage of the float for MEG is very high at 15.6%. We could easily see a big short-squeeze if MEG triggers that breakout soon, so make sure to keep this name on your low-priced stock trading radar.

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