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

Cheap Trades: 5 Breakout Stocks Under $10

BALTIMORE (Stockpickr) -- Everybody loves a bargain. Maybe that's what's so appealing about trading stocks with price tags under $10. And as we close out February's trading, there are some big gains to be made in the lowest-priced tickers.

One thing's for sure: Low-priced stocks tend to see higher trading volumes than other stocks of similar capitalization. That means that the potential for powerful breakouts is a lot bigger in low-priced names. To be clear, a low stock price isn't the same thing as a cheap valuation. In fact, by itself, share price isn't a very useful metric at all. But that doesn't change the fact that the setups in names priced under $10 tend to be more explosive than their pricier peers.

So today, we're taking a technical look at five new trades priced under $10.

>>5 Rocket Stocks Ready for Blastoff

For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.

Without further ado, let's take a look at five technical setups worth trading now.

Lloyds Banking Group

First up is Lloyds Banking Group (LYG - Get Report), a name that's been a serial outperformer of late. In the last 12 months, London-based Lloyds has rallied more than 63%, blowing the S&P 500's otherwise impressive year out of the water. But even if you missed the move, LYG looks ready to start on another leg higher. Here's how to trade it.

Lloyds Banking Group is currently forming a symmetrical triangle pattern, a setup that's also known as a "coil." The symmetrical triangle is made by a pair of trend lines that are converging at approximately the same rate. The buy signal comes on a breakout to the topside of the channel, currently right at the $5.60 level. If shares can take out $5.60, then we've got a strong indication that buyers have regained control of shares.

Relative strength has been trending higher for LYG since last summer, and it's even maintained its uptrend during this most recent consolidation. Since the 50-day moving average has been a stellar proxy for the lower trendline of LYG's triangle, it's a good place to put a protective stop when the trade triggers.

1 of 5

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
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
BBRY $10.48 0.00%
FTR $5.16 0.00%
LYG $5.48 0.00%
PKD $3.60 0.00%
SBS $5.89 0.00%


DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs