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3 Stocks Under $10 Moving Higher - 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 like a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst upgrade.
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 few under-$10 stocks that are making large-percentage moves to the upside today.
Summer Infant (SUMR) is a designer, marketer, and distributor of juvenile health, safety and wellness products, which are sold to North American and U.K. retailers. This stock is trading up 25% to $5.98 in recent trading.
Today’s Range: $4.90-$6
52-Week Range: $4.57-$9.48
Three-Month Average Volume: 78,089
Shares of SUMR are ripping higher today after the company beat Wall Street earnings estimates by 2 cents and reported in-line revenue.
From a technical perspective, SUMR is soaring higher today and moving back above its 50-day moving average of $5.83 today on strong volume.
Traders should now watch for a big breakout trade to trigger if SUMR can take out its recent gap down day high just under $6.25 with volume. Look for volume on a move over that level that’s near or well above 78,089 shares. If we get that action soon, then look for SUMR to trade towards $7 to possibly $7.50 very quickly.
Meru Networks (MERU) provides a virtualized wireless local area network (LAN) solution. This stock is trading up 8.3% at $5.22 in recent trading.
Today’s Range: $4.84-$5.31
52-Week Range: $3.16-$23.66
Three-Month Average Volume: 216,013
From a technical perspective, MERU is ripping higher today on decent volume and nearing a big breakout trade.
Traders should now watch MERU for a breakout trade to trigger if this stock can manage to take out some near-term overhead resistance at $5.38 to $5.80 with high-volume. A sustained high-volume move and close above those levels should set this stock up for much higher prices. Look for volume that’s near or well above 216,013 shares.
If we get that action soon, then target a possibly run back towards its next significant overhead resistance level at $6.85 in the near future.
SemiLEDS (LEDS) develops, manufactures and sells light-emitting diode chips and LED components. This stock is trading up 10.1% at $4.15 in recent trading.
Today’s Range: $3.78-$4.26
52-Week Range: $2.60-$16.75
Three-Month Average Volume: 120,910
From a technical perspective, LEDS has triggered a big breakout trade today now that its move above some near-term overhead resistance levels at $3.81 to $4 on strong volume. This move now puts LEDS within range of re-testing its next significant overhead resistance levels at $4.51 to $4.75 (its 200-day).
Traders should look for a strong close on LEDS near its daily highs and above $4 to signal that those next levels have a great shot of getting tagged soon.
To see more stocks under-$10 that are making notable moves higher today, check out the Stocks Under-$10 Moving Higher portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.