5 Stocks Under $10 Ready to Soar Higher

If you take a look at the chart for Northern Dynasty Minerals, you'll notice that this stock was slammed by the bears from March to late May, with shares plunging from over $7 to $2.25 a share. During that nasty move lower, shares of Northern Dynasty Minerals were consistently making lower highs and lower lows, which is bearish technical price action. That said, for the last two months this stock has started to mark a possible bottom, with shares trading between $2.20 and $2.94. This sideways price action is now setting up NAK to trigger a major breakout trade.

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Traders should now look for long-biased trades in NAK if this stock can manage to break out above its 50-day moving average at $2.50 a share, and then above some more overhead resistance levels at $2.72 to $2.94 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 291,714 shares. If we get that action soon, then NAK will have a great chance of hitting its next major overheard resistance levels at $3.75 to $4.31 a share.

If you're bullish on NAK, then one could look to buy this stock off any weakness and simply use a stop just below $2.27 to $2.20 a share. One could also buy off strength and get long once NAK clears its 50-day with high volume, and then simply use a stop below $2.27 to $2.20 a share. Look to add to any long position once NAK takes out $2.72 to $2.94 a share with high volume. BioFuel Energy

One under-$10 name in the chemical manufacturing complex that looks to trigger a major breakout trade is BioFuel Energy (BIOF) , which produces and sells ethanol and its co-products (primarily distillers grain), through two ethanol production facilities located in Nebraska and Minnesota. This stock has been crushed by the sellers during 2012, with shares off by over 75%.