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DELAFIELD, Wis. (Stockpickr) -- A smart trader keeps a close eye on unusual upside volume in stocks -- and unusual volume in a stock that trades below $10 should really make you sit up and pay attention.
Stocks that trade below $10 a share can make big moves to the upside very quickly, and short-term traders can try to capture some of that massive volatility. 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.
>>5 Rocket Stocks to Buy for Big Gains
With that in mind, let's take a closer look at a several stocks under $10 that are making sharp moves higher with unusual upside volume flows. BlackBerry
BlackBerry (BBRY) engages in the design, manufacture and marketing of wireless solutions worldwide. This stock is trading up 5% to $9.44 in Tuesday's trading session.
Tuesday's Range: $9.24-$9.65
52-Week Range: $5.44-$16.82
Tuesday's Volume: 19.28 million
Three-Month Average Volume: 25.13 million
From a technical perspective, BBRY is jumping higher here with decent upside volume flows. This stock recently formed a double bottom chart pattern at $8.92 to $8.95. Following that bottom, shares of BBRY have started to spike higher and move within range of triggering a near-term breakout trade. That trade will hit if BBRY manages to take out its 200-day moving average of $9.72 to some more near-term overhead resistance at $10.10 with high volume.
Traders should now look for long-biased trades in BBRY as long as it's trending above those double bottom support zones at $8.95 to $8.92 and then once it sustains a move or close above those breakout levels with volume that hits near or above 25.13 million shares. If that breakout hits soon, then BBRY will set up to re-test or possibly take out its next major overhead resistance levels at $10.85 to $11.65, or even $12.18.
Andatee China Marine Fuel Services
Andatee China Marine Fuel Services (AMCF), through its subsidiaries, engages in the production, storage, distribution and trading of blended marine fuel oil for cargo and fishing vessels in the People's Republic of China. This stock is trading up 8% to $1.89 a share in Tuesday's trading session.
Tuesday's Range: $1.75-$1.93
52-Week Range: $0.48-$2.75
Tuesday's Volume: 193,000
Three-Month Average Volume: 192,169
From a technical perspective, AMCF is soaring higher here right above its 50-day moving average of $1.63 with above-average volume. This move has started to push shares of AMCF into breakout territory, since the stock has flirted with some near-term overhead resistance at $1.89. Shares of AMCF are now starting to trend within range of triggering an even bigger breakout trade. That trade will hit if AMCF manages to take out some more near-term overhead resistance at $2.20 with high volume.
Traders should now look for long-biased trades in AMCF as long as it's trending above its 50-day at $1.63 and then once it sustains a move or close above $2.20 with volume that hits near or above 192,169 shares. If that breakout hits soon, then AMCF will set up to re-test or possibly take out its next major overhead resistance levels at its 52-week high of $2.75. Kopin
Kopin (KOPN) develops display products and computer headset technology. This stock is trading up 5% to $4.18 in Tuesday's trading session.
Tuesday's Range: $3.95-$4.29
52-Week Range: $3.06-$4.62
Thursday's Volume: 228,000
Three-Month Average Volume: 140,627
From a technical perspective, KOPN is ripping higher here right off its 50-day moving average of $4 with above-average volume. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $3.51 to its intraday high of $4.29. During that move, shares of KOPN have been consistently making higher lows and higher highs, which is bullish technical price action. That move is quickly pushing shares of KOPN within range of triggering a big breakout trade. That trade will hit if KOPN manages to take out some near-term overhead resistance levels at $4.52 to its 52-week high at $4.62 with high volume.
Traders should now look for long-biased trades in KOPN as long as it's trending above Tuesday's low of $3.95 or above its 200-day at $3.74 and then once it sustains a move or close above those breakout levels with volume that hits near or above 140,627 shares. If that breakout hits soon, then KOPN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $5.50 to $6. To see more stocks under $10 that are making notable moves higher with volume, check out the Stocks Under $10 Spiking Higher With Unusual Volume portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
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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.