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3 Stocks Under $10 Making Big Moves - 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.
Boyd Gaming (BYD), together with its subsidiaries, operates as a multi-jurisdictional gaming company in the U.S. This stock closed up 3.9% to $9.56 a share in Thursday's trading session.
Thursday's Range: $9.28-$9.66
52-Week Range: $6.27-$14.75
Thursday's Volume: 4.24 million
Three-Month Average Volume: 3.25 million
From a technical perspective, BYD spiked notably higher here right above some near-term support at $9.11 with above-average volume. This stock has been downtrending badly for the last few weeks, with shares moving lower from its high of $12.49 to its low of $9.11. During that downtrend, shares of BYD have been consistently making lower highs and lower lows, which is bearish technical price action. That move has pushed shares of BYD into oversold territory, since its current relative strength index reading is 33.61. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher from.
Traders should now look for long-biased trades in BYD as long as it's trending above that recent low of $9.11 and then once it sustains a move or close above Thursday's high of $9.66 to some more near-term resistance at $10 with volume that hits near or above 3.25 million shares. If we get that move soon, then BYD will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $10.93 to its 200-day moving average of $11.90.
Wendy's (WEN) engages in operating, developing, and franchising a system of distinctive quick-service restaurants. This stock closed up 1.9% to $9.07 a share in Thursday's trading session.
Thursday's Range: $8.95-$9.14
52-Week Range: $4.97-$9.51
Thursday's Volume: 4.08 million
Three-Month Average Volume: 8.58 million
From a technical perspective, WEN spiked modestly higher here right above its 50-day moving average of $8.68 with lighter-than-average volume. This move is starting to push shares of WEN within range of triggering a major breakout trade. That trade will hit if WEN manages to take out some key overhead resistance levels at $9.27 to its 52-week high at $9.51 with high volume.
Traders should now look for long-biased trades in WEN as long as it's trending above its 50-day at $8.68 or above $8.40 and then once it sustains a move or close above those breakout levels with volume that hits near or above 8.58 million shares. If that breakout hits soon, then WEN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $12 to $13.
Lionbridge Technologies (LIOX) provides language, content and testing solutions worldwide. This stock closed up 5.3% to $5.68 a share in Thursday's trading session.
Thursday's Range: $5.36-$5.79
52-Week Range: $2.16-$6.40
Thursday's Volume: 270,000
Three-Month Average Volume: 499,427
From a technical perspective, LIOX trended sharply higher here right off some key support levels at $5.40 to $5.36 with lighter-than-average volume. This stock has tested those support levels near $5.40 to $5.30 multiple times now over the last three months and buyers have stepped in to support the stock. Shares of LIOX are now quickly moving within range of triggering a near-term breakout trade. That trade will hit if LIOX manages to take out its 50-day moving average of $5.76 to some more near-term overhead resistance at $6 with high volume.
Traders should now look for long-biased trades in LIOX as long as it's trending above support at $5.30 and then once it sustains a move or close above those breakout levels with volume that hits near or above 499,427 shares. If that breakout hits soon, then LIOX will set up to re-test or possibly take out its 52-week high at $6.40. Any high-volume move above that level will then give LIOX a chance to tag $7 to $8.
To see more stocks that are making notable moves higher, 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.