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2 Basic Material Stocks Under $10 to Watch - views
Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.
Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.
With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.
Yanzhou Coal Mining
Yanzhou Coal Mining (YZC) engages in underground coal mining, as well as preparation, processing, sale and railway transportation of coal. This stock closed up 6% to $7.72 in Tuesday's trading session.
Tuesday's Range: $7.63-$7.76
52-Week Range: $6.68-$18.57
Tuesday's Volume: 350,000
Three-Month Average Volume: 377,491
From a technical perspective, YZC gapped higher here right above some near-term support at $7.13 with decent upside volume. This stock has been downtrending badly for the last five months, with shares trending lower from its high of $14.86 to its recent low of $6.68. During that move, shares of YZC have been consistently making lower highs and lower lows, which is bearish technical price action. Shares of YZC have now potentially started to reverse its downtrend, with the stock uptrending over the last month. This stock is quickly moving within range of triggering a near-term breakout trade. That trade will hit if YZC manages to take out some near-term overhead resistance levels at $8 to its 50-day at $8.51 with high volume.
Traders should now look for long-biased trades in YZC as long as it's trending above $7.13 and then once it sustains a move or close above those breakout levels with volume that hits near or above 377,491 shares. If that breakout hits soon, then YZC will set up to re-test or possibly take out its next major overhead resistance levels at $10 to $10.67. Any high-volume move above those levels will then put its next major overhead resistance levels at $11.11 to $12.38 into range for shares of YZC.
Vista Gold (VGZ) is engaged in the evaluation, acquisition, exploration and advancement of gold exploration and potential development projects. This stock closed up 10.7% to 90 cents per share in Tuesday's trading session.
Tuesday's Range: $0.82-$0.93
52-Week Range: $0.72-$4.09
Tuesday's Volume: 1.06 million
Three-Month Average Volume: 566,327
From a technical perspective, VGZ ripped higher here right above some near-term support at 80 cents with above-average volume. This stock has been downtrending badly for the last four months, with shares dropping sharply from $2.34 to its recent low of 72 cents per share. During that move, shares of VGZ have been consistently making lower highs and lower lows, which is bearish technical price action. Shares of VGZ have now started to spike higher and potentially move out of its downtrend and into an uptrend. This stock is also moving within range of triggering a near-term breakout trade. That trade will hit if VGZ manages to take out some near-term overhead resistance levels at 93 cents to $1.02 with high volume.
Traders should now look for long-biased trades in VGZ as long as it's trending above Tuesday's low of 82 cents and then once it sustains a move or close above those breakout levels with volume that hits near or above 566,327 shares. If that breakout hits soon, then VGZ will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day of $1.15 to $1.30. Any high-volume move above those levels will then put $1.40 to $1.50 within range for shares of VGZ.
To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.