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

Suntech Power

One under-$10 stock that looks poised to trigger a major breakout trade is Suntech Power ( STP), which is a solar energy company, which designs, develops, manufactures and markets a number of PV cells and modules. This stock has been hit hard by the bears so far in 2013, with shares down by 30%.

If you take a look at the chart for Suntech Power, you'll notice that this stock is just starting to flirt with some near-term overhead resistance at $1.07 a share. You'll also notice that shares of STP have formed a triple bottom over the last month, with the stock finding buying interest at 86 cents, 89 cents and 93 cents per share. That triple bottom zone is now a major base for STP to launch from with the stock starting to flirt with a major breakout trade.

>>4 Tech Stocks Under $10 to Watch

Traders should now look for long-biased trades in STP if it manages to break out above some near-term overhead resistance levels at $1.18 to $1.28 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 5.51 million shares. If that breakout triggers soon, then STP will set up to re-test or possibly take out its next major overhead resistance levels at $1.70 to $1.78 a share. Any high-volume move above those levels will then give STP a chance to tag its next major overhead resistance levels at $2 to $2.15 a share.

Traders can look to buy STP off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average at 84 cents per share. One can also buy STP off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point. Keep in mind that buying above $1.07 is also prudent since that's a key breakout level right before $1.18 to $1.28 a share.

This stock has big short-squeeze potential, since the current short interest as a percentage of the float for STP is very high at 14.12%. This breakout could be exactly what's needed to force the bears to cover some of their short positions, so make sure to keep this name on your trading radar.

2 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 16,987.51 -61.49 -0.36%
S&P 500 1,985.54 -11.91 -0.60%
NASDAQ 4,567.5980 -24.2080 -0.53%

Brokerage Partners

Rates from

  • 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