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Technology Stocks : Digital Ally Inc. - DGLY
DGLY 1.760-0.6%9:30 AM EST

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From: David Alan Cook1/8/2014 7:35:05 AM
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4 Stocks to Buy Under $10 - DGLY (The Street)

Digital Ally
( DGLY _) produces digital video imaging, audio recording and related storage products for use in law enforcement and security applications in the U.S. and internationally. This stock closed up 4.4% to $9.56 in Tuesday's trading session.

Tuesday's Range: $9.12-$9.60
52-Week Range: $3.16-$17.47
Tuesday's Volume: 38,000
Three-Month Average Volume: 76,456

From a technical perspective, DGLY spiked notably higher here right above its 200-day moving average of $8.61 with lighter-than-average volume. This move is quickly pushing shares of DGLY within range of triggering a big breakout trade. That trade will hit if DGLY manages to take out Tuesday's high of $9.60 to some more key overhead resistance at $9.64 with high volume. Traders should now look for long-biased trades in DGLY as long as it's trending above its 200-day at $8.61or above its 50-day at $8.43 and then once it sustains a move or close above those breakout levels with volume that hits near or above 76,456 shares. If that breakout hits soon, then DGLY will set up to re-test or possibly take out its next major overhead resistance level at $10.89. Any high-volume move above that level will then give DGLY a chance to tag $12 to $13.
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