5 Stocks Under $10 Set to Soar

>>22 Biopharma Stocks With Breakout Potential in 2012 Traders should now look for long-biased trades in PIP if it can manage to trigger a break out above some near-term overhead resistance at $1.53 to $1.57 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 423,573 shares. If we get that action soon, then PIP will have a great chance of re-testing and possibly taking out its next major overhead resistance levels at $1.68 to $1.70, and at $1.84 to $1.89 a share. If all those levels get taken out with volume, then PIP will be free to clear $2.10 a share, and after $2.10 there's very little overhead resistance until $2.40 to $3.35 a share.

If you're bullish on PIP, then one could buy off weakness and simply use a stop right below its 50-day moving average of $1.43 a share. There's some pretty solid near-term support at $1.40 and at $1.31 a share as well that traders can key off of. One could also just buy off strength once $1.53 to $1.57 are taken out with volume, then add above $1.89 to $2.10 a share if the upside volume continues to track in strong. Use a stop just below the 200-day at $1.47 a share if you get long off strength.

This stock is pretty popular among short-sellers. The current short interest as a percentage of the float for PIP is rather high at 13.4%. This makes PIP a great short-squeeze candidate if it can manage to enter breakout territory soon. Endocyte

Another under-$10 name in the biotechnology and drugs complex that looks ready to trigger a major breakout trade is Endocyte (ECYT) , which is engaged in developing therapies for the treatment of cancer and inflammatory diseases. This stock is off to a red-hot start in 2012, with shares up over 110%.