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3 Stocks Under $10 Ripping Higher in a Flat Market - 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.
Molycorp (MCP) is a rare earth company. This stock is trading up 5.4% to $5.90 in recent trading.
Today’s Range: $5.43-$5.96
52-Week Range: $4.70-$28.35
Volume: 4.86 million
Three-Month Average Volume: 6.55 million
From a technical perspective, MCP is spiking significantly higher here back above its 50-day moving average at $5.76 and back above some near-term overhead resistance at $5.82 with decent upside volume. This move has pushed shares of MCP into breakout territory, since both of those key resistance levels have been taken out. At last check, MCP has hit an intraday high of $5.96 and volume is a bit below its three-month average action of 6.55 million shares.
Traders should now look for long-biased trades in MCP as long as it’s trending above its 50-day at $5.76 and then once it sustains a move or close above $5.82 with volume that hits near or above 6.55 million shares. If MCP maintains this move, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $6.55 to $6.61. Any high-volume move above those levels will then put $7.50 to $8 into range for shares of MCP.
Entravision Communications (EVC) is a Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers in the U.S. This stock is trading up 8.1% to $3.897 in recent trading.
Today’s Range: $3.62-$3.89
52-Week Range: $1.10-$3.89
Three-Month Average Volume: 788,960
From a technical perspective, EVC is ripping higher here right off some near-term support at $3.50 with above-average volume. This stock has now started to enter breakout territory and new 52-week-high territory, since shares have cleared some near-term overhead resistance at $3.88. At last check EVC has hit an intraday high of $3.89, and volume is well above its three-month average action of 788,960 shares.
Traders should now look for long-biased trades in EVC as long as it’s trending above that first breakout level at $3.50, and then once it sustains a move or close above $3.88 to $3.89 with volume that hits near or above 788,960 shares. If EVC can maintain this move, then this stock will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $6 to $7.50.
First Marblehead (FMD) offers education loan programs for K-12, undergraduate and graduate students. It also offers related ancillary services including loan origination, retail banking, portfolio management and securitization services. This stock is trading up 7.9% to $1.22 in recent trading.
Today’s Range: $1.13-$1.24
52-Week Range: $0.61-$1.24
Volume: 1.41 million
Three-Month Average Volume: 290,626
From a technical perspective, FMD is spiking sharply higher here right above some near-term support at $1.10 with heavy upside volume. This stock has been uptrending strong for the last three months, with shares soaring higher from its low of 85 cents to its recent high of $1.24. During that move, shares of FMD have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of FMD within range of triggering a major breakout trade. That trade will hit if FMD can manage to clear some key overhead resistance at $1.24 with high volume.
Traders should now look for long-biased trades in FMD as long as it’s trending above some key near-term support at $1.10 or above today’s low of $1.13, and then once it sustains a move or close above $1.24 with volume that hits near or above 290,626 shares. If that breakout triggers soon, then FMD will set up to re-test or possibly take out its next major overhead resistance levels at $1.52 to $1.58. Any high-volume move above those levels will then put $1.75 to $2 into range for shares of FMD.
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.