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

Stocks in this article: ATOSIDRAAMCFYRCWVVUSMERU

YRC Worldwide

One under-$10 trucking player that's starting to trend within range of triggering a big breakout trade is YRC Worldwide ( YRCW), which, through its subsidiaries, provides various transportation services primarily in North America.. This stock has been hit hard by the bears over the last three months, with shares off sharply by 50%.

>>Sell These 5 Toxic Stocks to Avoid a Christmas Crash

If you take a look at the chart for YRC Worldwide, you'll notice that this stock has been downtrending badly for the last five months, with shares plunging lower from its high of $33.89 to its recent low of $7.06 a share. During that downtrend, shares of YRCW have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of YRCW have now started to stabilize and the stock has formed a triple bottom chart pattern over the last month, at $7.06, $7.20 and $7.44 a share. Shares of YRCW have now reversed its downtrend and started to uptrend, with the stock moving higher from $7.06 to its recent high of $10.50 a share. That move has now pushed shares of YRCW within range of triggering a big breakout trade.

Traders should now look for long-biased trades in YRCW if it manages to break out above some near-term overhead resistance levels at $10.63 a share to its 50-day moving average of $10.87 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 volume of 826,789 shares. If that breakout triggers soon, then YRCW will set up to re-test or possibly take out its next major overhead resistance levels $12.38 to $15 a share. Any high-volume move above $15 will then give YRCW a chance to tag $16 to $18 a share.

Traders can look to buy YRCW off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $9.20 or at $8.35 a share. One can also buy YRCW off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • 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