One under-$10 stock that's trending very close to trigger a major breakout trade is Global Geophysical Services ( GGS), which provides an integrated suite of seismic data solutions to the global oil and gas industry. This stock has smashed lower by the sellers, with shares off by 33% so far in 2013. If you take a look at the chart for Global Geophysical Services, you'll notice that this stock recently crashed hard from its high of $4.73 to its 52-week low of $2.22 a share with heavy downside volume. Following that plunge, shares of GGS have started to stabilize and make higher lows with the stock now trading at around $2.60 a share. That move is quickly pushing shares of GGS within range of triggering a major breakout trade. >>5 Rocket Stocks Getting Ready for Blastoff Traders should now look for long-biased trades in GGS if it manages to break out above some near-term overhead resistance levels at $2.63 to $2.65 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 276,308 shares. If that breakout triggers soon, then GGS could explode to the upside and possibly trend back towards its 50-day moving average of $3.63 a share. Traders can look to buy GGS off any weakness to anticipate that breakout and simply use a stop that sits just below some near-term support levels at $2.42 to $2.33 a share, or even around its 52-week low of $2.22 a share. One can also buy GGS off strength once it takes out those breakout levels with volume and then simply use a stop that sits just below $2.33 a share.
Global Geophysical Services (GGS) plunged more than 50% to a one-year low of 48 cents on Tuesday after the company stated some of its past financial reports are unreliable. The company said in its preliminary fourth-quarter and full fiscal year results that financial reports for each of the fiscal years ended Dec. 31, 2012, 2011, 2010, and 2009 and the first, second and third quarters of 2013 "should no longer be relied upon because of accounting errors resulting from material weaknesses in the company's internal controls." Global Geophysical did state, though, that it expects to report fourth-quarter revenue of approximately $81 million, which would beat the Capital IQ consensus estimate of $75.6 million. The company also expects a pre-tax loss from operations of $69.4 million.