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5 Stocks Under $10 Set to Soar


One under-$10 testing and measuring equipment player that's starting to trend within range of triggering a big breakout trade is Exfo (EXFO) , which designs, manufactures, and markets test, service assurance, and network visibility solutions for fixed and mobile network operators, Web-scale service providers, and telecommunications equipment manufacturers worldwide. This stock has been in play with the bulls over the last six months, with shares moving higher by 15.7%.

If you take a glance at the chart for Exfo, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $3.16 to $3.14 a share over the last few weeks. Following that potential bottom, shares of Exfo have now started to spike a bit higher and it's quickly moving within range of triggering a big breakout trade above some key near-term overhead resistance levels.

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Traders should now look for long-biased trades in Exfo if it manages to break out above some near-term overhead resistance levels at $3.36 to its 200-day moving average of $3.41 a share and then above more key resistance at $3.48 a share with volume that hits near or above its three-month average action of 28,445 shares. If that breakout fires off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $3.75 to $4.10, or even $4.20 to $4.36 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right below those recent double bottom support levels. One can also buy shares of Exfo off strength once it starts to move above those...