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2 Tech Stocks Under $10 Triggering Big Breakouts - 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.
Oi (OIBR), through its subsidiaries, provides integrated telecommunication services for residential customers, companies and governmental agencies in Brazil. This stock closed up 8.6 % to $1.89 in Thursday's trading session.
Thursday's Range: $1.73-$1.91
52-Week Range: $1.44-$4.69
Thursday's Volume: 5.48 million
Three-Month Average Volume: 3.91 million
From a technical perspective, OIBR bounced sharply higher here back above its 50-day moving average of $1.83 with heavy upside volume. This move is quickly pushing shares of OIBR within range of triggering a near-term breakout trade. That trade will hit if OIBR manages to take out some near-term overhead resistance levels at $1.94 to $2.29 with high volume.
Traders should now look for long-biased trades in OIBR as long as it's trending above its 50-day at $1.83 or above more key near-term support at $1.72 and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.91 million shares. If that breakout triggers soon, then OIBR will set up to re-test or possibly take out its next major overhead resistance levels at $2.44 to its 200-day at $3.06.
Boingo Wireless (WIFI) provides mobile Wi-Fi Internet solutions. This stock closed up 6.8% to $7.51 a share in Thursday's trading session.
Thursday's Range: $6.97-$7.54
52-Week Range: $5.35-$8.39
Thursday's Volume: 326,000
Three-Month Average Volume: 137,033
From a technical perspective, WIFI surged higher here right above its 200-day moving average of $6.85 with heavy upside volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $5.83 to its intraday high of $7.54. During that uptrend, shares of WIFI have been consistently making higher lows and higher highs, which is bullish technical price action. That move is now pushing shares of WIFI within range of triggering a major breakout trade. That trade will hit if WIFI manages to take out some near-term overhead resistance levels at $7.51 to $7.54 with high volume.
Traders should now look for long-biased trades in WIFI as long as it's trending above its 200-day at $6.85 or above its 50-day at $6.63 and then once it sustains a move or close above those breakout levels with volume that hits near or above 137,033 shares. If that breakout hits soon, then WIFI will set up to re-fill its previous gap down zone from February that started at $8.11 to $8.39. Any high-volume move above those levels will then put its next major overhead resistance level at $9.71 into range for shares of WIFI.
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.