Markets
5 Ways To Get Into The Stock Market For Under $10
Ever hear the one about the pharmacists, the athlete, and the renovator?
It’s no joke!
In this article, we go through five stocks currently trading at under $10 that have traders feeling bullish.
A mix of pharmacy, sports retailing, and homewares, read on for the details of where you should be investing.
Investing in cheap stocks
If a stock has a low price, you can bet that at some point it will experience a spike in price, and this leads traders to target these stocks very often in the hope that they do.
There is plenty of money to be made in the low-price trading game, and those that are prepared to do so can share in this wealth.
You’d be best to stick to charts and the analysis of the technical experts when doing so, rather than just buying something for the sole reason that it’s cheap (why is it so?).
Plenty of commentators can be found online that will keep their followers up to date with the latest information in trends and pricing charts.
Examples of great $10 stock targets could be those high-probability setups you hear about a lot.
Or, they could be breakout candidates, new to the market, or those with financials that are making investors feel bullish about the stock price forecast.
Now, let’s go through five current ones being advised to buy by traders.
The first in our trio of pharmaceuticals is Aratana Therapeutics, which recently appointed a new Chief Operations Officer.
This globally-minded company focuses its business activities on the development, licensing and the commercialization (to bring to market) of biopharmaceuticals aimed at animals.
Its website calls the company a Pet Therapeutics company.
The Bulls have been sharpening their horns in regards to this stock over the last few months, and its shares are trending higher by a very strong 22.2%.
The detailed chart above shows that the stock performed what industry insiders called a double bottom chart pattern very recently, with shares attracting lots of buying interest when around the $5.70 per share mark, during the last two months.
Shares have recently begun to trend back over the 200-day average of what was $6.14 a share and the average of the most recent quarter of that period, the slightly higher figure of $6.39 a share.
The trend we see is very rapidly pushing the stock to within range of kick-starting a short-term breakout trade above key overhead resistance measures.
Savvy traders will now be looking for long-bias trading strategies in this Therapeutics player, should it manage to break out above the near-term average overheads of between $6.75 per share and $6.90 per share and then even move above further resistance at $7 per share with a volume hitting near or above the 90-day moving action average of around 735k shares.
Should that breakout be triggered anytime soon, the stock will see the proceeding overhead resistance level spike to $7.50 to possibly $7.66, or even as high as somewhere between $7.75 and $8.84 per share.
The advice is as follows: buy the stock off weakness in order to anticipate this breakout and then sagely use a stop that is equal to the 200-day average we mentioned earlier, $6.14 per share, or even nearer to the double bottom levels we mentioned.
If one chooses to buy off strength instead, our advice is to do so once those breakout levels are eclipsed with volume, and then safely use a stop that sits a nice, comfortable percentage level from your initial entry point.
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This is a Canadian market-focused company that is currently developing a therapeutic drug that aims to treat autoimmune diseases.
With a current stock price of less than $10 and a six-month increase of 15.2% up until now, it is trending within the range of triggering what investors call a near-term breakout trade.
The following chart demonstrates its rising trend, or uptrending, especially for the last two months, going from just over $2 a share to $3 a share.
The bullish technical price action which is making this a must-have for many investors is the fact that during this uptrend period, Aurinia has been making higher highs and higher lows.
In the face of key overhead resistance (the amount the company is spending) these trends are what has moved it into breakout trading territory.
Out advice for market players is to look for what industry lexicographers call long-bias trades, in shares of Aurinia, but only if they manage to:
- Break-out above the short-term overheads resistance levels at $2.90 – $3 a share
- And then, move above the more key (long-term) resistance levels at trading prices of between $3.25 and $3.30 a share, with some higher volumes.
Investors should specifically look for moves or closes that are above the levels with a volume that registers near, or preferably above, the three-month average action: 33,505 shares in total.
Should the breakout fire off all guns blazing, the stock will almost certainly rise even further to almost $4 or maybe even almost $5.
Smart traders are buying Aurinia stocks off weakness in order to anticipate said breakout, and thus have the ability to use a stop that sits a little below the 200-day moving average which measures at $2.66 per share, or the near-term support average of around $2.50 a share.
Or, a clever trader could decide to sell shares off strength once clearing of breakout levels commences (which it will) and then conversely use a stop that sits a fairly comfortable percentage level from your initial entry point.
The third leg of our tripod of pharmaceuticals is KemPharm.
This company works in the U.S market, discovering and developing new proprietary prodrugs.
It has been spiking within the range of trigger a huge breakout.
Sellers have acted to destroy its value over the last few months, almost falling by a staggering 80%.
The chart shown here helps us notice several things.
Firstly, the downtrend over the last month is as clear as day.
Shares have fallen sharply lower of the highest levels of $7.84 to the lowest for a whole year, a measly $3.52 a share.
In the time that downtrend was occurring, the stock was making lower lows and lower highs, which is what is called bearish technical price action in the industry, as opposed to bullish.
With that being said, shares have thankfully rebounded from that poor performance, and rapid movement in the opposite direction has seen many tout it for a period of big breakout trading.
Our advice is to look for long-bias trades in this stock.
This is based on a prediction that it will break out well above the near-term overhead resistance quoted levels at between $4.25 and $4.50 per share, with a high volume, of course.
Watch the charts and keep an eye out for a sustained close or move above those levels we’ve outlined with a volume that hits near or preferably above the 90-day average of 229,159 shares auctioned.
Should the breakout develop, as many have predicted, the stock will be set up to re-test or maybe even take out the proceeding overhead resistance level at a solid $5 to a 20-day average of $5.23 per share.
If there is a high-volume move that pops $5.23, then the stock will have a strong chance to make up for the previous losses earlier this month when it started at $7 per share.
Buying this stock off weakness in anticipation of this predicted breakout could be combined with using a stop that sits somewhere below the short-term support price of $4 per share or the year-low of a lesser $3.52 per share.
Or conversely, if one decides to buy off strength instead, once it starts to trend above breakout levels and the furor begins, simply use a stop mechanism that sits comfortably above your entry point figure.
Moving away from pharmaceuticals (yes, there are other things to buy!), we come to our sports goods retailer that is spiking currently, Sportsman’s Warehouse.
This company offers various products in a store format that has an average of 11,000 square feet.
The Decathlon of the USA.
The spiking has been such that many see it as within range to trigger the near-term breakout trading event.
Heavy selling pressure has been imposed upon it over the last several months by nervy investors, which has subsequently sent the share price tumbling by a significant 37.5%.
One thing that is immediately obvious from the chart is that it has also, recently performed a double bottom chart trend, when shares found buying interest at between $7.77 and $7.71 per share over the last 30 days.
Uptrending has taken over recently, with the 20-day average of $8.09 per share being overshone by its recent performance, following the potential bottom of around $7.70.
These recent trends have seen many traders predicting a near-term, approaching breakout trade in above key overheads.
Advice is to look for long-bias trades in this stock.
This advice is based on a prediction that there will be a very rapid breakout above the near-term overhead levels in the region of between $8.26 and $8.55 per share, and then further moves to $8.75 and even $9 per share with some high volume.
Keep an eye out for sustained moves above aforementioned levels with volumes hitting above or near the 90-day averages of around 625k shares traded.
Should the breakout predicted kick off sometime soon, the stock could re-test or even take out the major overhead resistance at the 50-day moving average, at $9.47 to $10.17 or perhaps even higher: $10.50 to even $11 a share.
Optimistic perhaps.
Buying off weakness in anticipation of the upcoming breakout can be combined with using a stop that sits comfortable around the double bottom levels.
Also advised, could be to buy off strength once the breakout levels are taken out with volume and then use a stop that sits a nice, comfy percentage from the initial entry point of transaction.
Not your typical company to be the target for investment strategies in stocks, Tuesday Morning is a retailer of quite upscale home accessories, homeware goods, seasonal goods and gifts in the U.S.
Bulls have been licking their lips with regards to this one, with shares moving higher by 7.1% during the last two quarters.
A glance at this chart for the company shows is has seen sideways consolidation and trending over the last 60 days.
Shares have moved between $6.15 on the lower side, and at $7.25 on the higher side.
Stock has started to trend, recently at least, back above the 200-day average of $6.70 per share and average during the most recent tenth of that period of a slightly higher price of $6.81 per share.
This is a trend that is pushing shares of TM within what many deem a range capable of triggering near-term breakout trading above the upper limit of its horizontal trading pattern mentioned a second ago.
Advice to investors and traders:
- Look for long-bias trading in TM, should it manage to break above the short-term resistance levels at around $7 to $7 and three cents extra.
- Repeat the same if TM manages to head above the 50-day average of $7.11 per share and over further resistance levels to a higher price of between $7.13 and $7.25 per share, with a high volume of course.
- Keep an eye out for sustained moves or closes above these levels with volumes that equal or surpass the average 90-day moving action total of 361,730 shares.
- Should the predicted breakout spark soon, the stock will rise to a very strong $8 or $8.75, with the upper limit currently touted as a very strong $9.20 per share.
Regarding buying off weakness and off strength:
- Buying off weakness will work well in anticipation of the breakout if a stop that sits above the 200-day average we mentioned earlier is used, the price of $6.69 per share, or perhaps even the key support levels that are lower, around $6.22 to $6.15 for each share.
- Buying off strength could be done once it starts to move above-said breakout levels, by using a stop sitting somewhere comfortably above your percentage at entry.
