One under-$10 name that's starting to push within range of triggering a major breakout trade is MGIC Investment (MTG), which is a provider of private mortgage insurance in the U.S. This stock has been in beast mode in 2013, with shares up 134%.
If you take a look at the chart for MGIC Investment, you'll notice that this stock has been trending sideways for the last two months, with shares trading between $6.60 on the upside and $5.51 on the downside. During that timeframe, MTG has run into major resistance six times when it's traded higher near $6.45 to $6.60 a share. This stock has just started to bounce off its 50-day moving average at $5.84 a share and is now quickly moving within range of breaking out above that major resistance zone. Since that zone has held buyers back for over two months, a breakout above it with volume would be a significant technical development.
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