Another under-$10 name that's starting to move within range of triggering a major breakout trade is LDK Solar (LDK), which sells multicrystalline and monocrystalline wafers globally to manufacturers of solar cells and modules. This stock hasn't done much so far in 2013, with shares off by 4.5%.
If you take a look at the chart for LDK Solar, you'll notice that this stock has been downtrending badly for the last month and change, with shares dropping from its high of $2.17 to its recent low of $1.23 a share. During that downtrend, shares of LDK have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of LDK have just started to trend back above its 200-day moving average at $1.34 and its testing its 50-day moving average at $1.41 a share. That move is setting up LDK to potentially break out above a key downtrend line.
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