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3 Health Care 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.
Tranzyme (TZYM), a biopharmaceutical company, engages in the discovery, development and commercialization of mechanism-based therapeutics primarily in the U.S. This stock closed up 6% at 55 cents on Thursday.
Thursday's Range: $0.49-$0.58
52-Week Range: $0.40-$5.16
Three-Month Average Volume: 490,321
From a technical perspective, TZYM bounced higher here right off its 50-day moving average at 50 cents with above-average volume. This stock has been trending sideways in a consolidation chart pattern for the last three months, with shares moving between 68 cents on the upside and 40 cents on the downside. This spike today is quickly pushing shares of TZYM within range of triggering a major breakout trade. That trade will hit if TZYM manages to take out some near-term overhead resistance levels at 57 to 60 cents with high volume.
Traders should now look for long-biased trades in TZYM as long as it's trending above its 50-day at 50 cents and then once it sustains a move or close above those breakout levels with volume that hits near or above 490,321 shares. If that breakout triggers soon, then TZYM will set up to re-test or possibly take out its next major overhead resistance levels at 65 to 68 cents. Any high-volume move above 68 cents will then put its next major overhead resistance levels at 74 to 82 cents into range for shares of TZYM.
Aveo Pharmaceuticals (AVEO), a biopharmaceutical company, is involved in discovering, developing and commercializing novel cancer therapeutics. This stock closed up 3.6% at $2.59 on Thursday.
Thursday's Range: $2.46-$2.62
52-Week Range: $2.25-$14.08
Volume: 2.46 million
Three-Month Average Volume: 1.84 million
From a technical perspective, AVEO bounced higher here right off some near-term support at $2.50 with heavy upside volume. This stock recently gapped down sharply from around $5.50 to $2.25 with heavy downside volume. Following that move, shares of AVEO have started to bounce higher off $2.25 and off extremely oversold levels. The current relative strength index reading for AVEO is 19.11, which is an extreme oversold condition. Oversold can always get more oversold, but shares of AVEO are now starting to move within range of triggering a major breakout trade. That trade will hit if AVEO manages to take out some near-term overhead resistance at $2.71 and then once it clears its gap down day high of $3.01 with high volume.
Traders should now look for long-biased trades in AVEO as long as it's trending above some key near-term support levels at $2.31 to $2.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.84 million shares. If that breakout triggers soon, then AVEO will set up to re-fill some of its previous gap down zone that started near $5.50. Some possible upside targets for AVEO if it gets into that gap with volume are $4 to $5.
Immunomedics (IMMU) is a biopharmaceutical company focused on the development of monoclonal antibody-based products for the targeted treatment of cancer, autoimmune and other serious diseases. This stock closed up 3.2% at $2.56 on Thursday.
Thursday's Range: $2.46-$2.61
52-Week Range: $2.11-$3.76
Three-Month Average Volume: 436,776
From a technical perspective, IMMU bounced higher here right off its 50-day moving average of $2.46 with decent upside volume. This move is starting to push shares of IMMU into breakout territory, since it's flirting with taking out a key downtrend line that dates back to February. That breakout will hit if IMMU manages to take out some near-term overhead resistance levels at $2.56 to $2.62 and then once it clears more resistance at $2.75 with high volume.
Traders should now look for long-biased trades in IMMU as long as it's trending above its 50-day at $2.46 or above some key near-term support levels at $2.40 to $2.30 and then once it sustains a move or close above those breakout levels with volume that hits near or above 436,776 shares. If that breakout hits soon, then IMMU will set up to re-test or possibly take out its next major overhead resistance levels at $3 to $3.14. Any high-volume move above $3.14 will then put $3.23 to $3.40 into range for shares of IMMU.
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 Madison, Wis.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Madison, 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.