One final under-$10 stock that looks ready to trigger a major breakout trade is ChinaCache International (CCIH), a provider of Internet content and application delivery services in China. This stock has been on fire in 2013, with shares up huge by 160%.
If you take a look at the chart for ChinaCache International, youll notice that this stock has been uptrending strong for the last month, with shares soaring higher from its low of $6.80 to its recent high of $9.98 a share. During that uptrend, shares of CCIH have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CCIH within range of triggering a major breakout trade.
Traders should now look for long-biased trades in CCIH if it manages to break out above some near-term overhead resistance at $9.98 a share to its 52-week high at $10.64 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 503,461 shares. If that breakout triggers soon, then CCIH will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $14 to $16 a share.Traders can look to buy CCIH off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $9 or at $8.50 a share. One can also buy CCIH 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.
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