This Day On The Street
Continue to site
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

5 Stocks Under $10 set to Soar

Mindspeed Technologies

One final under-$10 semiconductor player that looks ready to trigger a major breakout trade is Mindspeed Technologies ( MSPD), which designs, develops and sells semiconductor networking solutions for communications applications in enterprise, access, metropolitan and area networks. This stock has been under control of the bears so far in 2013, with shares off by 35.9%.

>>The Icahn Effect: Is Apple the Next Netflix?

If you take a look at the chart for the Mindspeed Technologies, you'll notice that this stock has been trending sideways for the last four months inside of a consolidation pattern, with shares moving between $2.75 on the downside and $3.58 on the upside. Shares of MSPD have pulled back in the last two months from that $3.58 a share to $2.75 a share. The stock has formed a near-term double bottom off that pullback at $2.75 to $2.77 a share. Shares of MSPD are now starting to break out above some near-term overhead resistance at $2.95 a share today. That move is quickly pushing MSPD within range of triggering a major breakout trade.

Traders should now look for long-biased trades in MSPD if it manages to break out above its 50-day at $3.14 a share and then once it takes out more near-term overhead resistance levels at $3.58 to its 200-day at $3.61 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 479,780 shares. If that breakout triggers soon, then MSPD will set up to re-test or possibly take out its next major overhead resistance levels at $4.25 to $4.50 a share. Any high-volume move above those levels will then put $5 to its 52-week high at $5.27 into range for shares of MSPD.

Traders can look to buy MSPD off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $2.77 to $2.75 a share. One can also buy MSPD 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.

To see more hot under-$10 equities, check out the Stocks Under $10 Setting Up to Explode portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including and . You can follow Pedone on Twitter at or @zerosum24.
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
MSPD $0.00 0.00%
JRCC $0.00 0.00%
ACH $8.83 0.23%
MDR $4.46 -3.67%
SOL $1.40 -0.71%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs