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3 Stocks Under $10 Spiking on Big Volume - views
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. Highway Holdings
Highway Holdings (HIHO), through its subsidiaries, manufactures and sells metal, plastic, electric and electronic components, subassemblies and finished products for original equipment manufacturers and contract manufacturers. This stock is trading up 4% to $3.07 in Tuesday's trading session.
Tuesday's Range: $2.97-$3.12
52-Week Range: $1.65-$5.08
Tuesday's Volume: 62,000
Three-Month Average Volume: 81,076
From a technical perspective, HIHO is ripping higher here right off its 50-day moving average of $2.95 with decent upside volume flows. This move is quickly pushing shares of HIHO within range of triggering a major breakout trade. That trade will hit if HIHO manages to take out some near-term overhead resistance levels at $3.37 to $3.40 and then $3.55 with high volume.
Traders should now look for long-biased trades in HIHO as long as it's trending above its 50-day at $2.95 or above more near-term support levels at $2.75 to $2.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 81,076 shares. If that breakout hits soon, then HIHO will set up to re-test or possibly take out its next major overhead resistance levels at its 52-week high of $5.08.
Renren (RENN) operates a social networking Internet platform in the People's Republic of China. This stock is trading up 5% to $3.55 in Tuesday's trading session.
Tuesday's Range: $3.32-$3.59
52-Week Range: $2.52-$4.63
Tuesday's Volume: 2.36 million
Three-Month Average Volume: 1.91 million
From a technical perspective, RENN is ripping higher here right off its 200-day moving average of $3.30 with strong upside volume. This move is starting to push shares of RENN into breakout territory, since the stock has taken out some near-term overhead resistance at $3.50. Shares of RENN are now quickly moving within range of triggering another near-term breakout trade. That trade will hit if RENN manages to clear some past overhead resistance at $3.62 with high volume.
Traders should now look for long-biased trades in RENN as long as it's trending above its 200-day at $3.30 or its 50-day at $3.16 and then once it sustains a move or close above $3.62 with volume that hits near or above 1.91 million shares. If that breakout hits soon, then RENN will set up to re-test or possibly take out its next major overhead resistance levels at $4.15 to $4.21, or even its 52-week high at $4.63.
Lionbridge Technologies (LIOX) provides language, content and testing solutions worldwide. This stock is trading up 4% to $6.95 in Tuesday's trading session.
Tuesday's Range: $6.65-$7.07
52-Week Range: $2.16-$7.09
Tuesday's Volume: 654,000
Three-Month Average Volume: 521,877
From a technical perspective, LIOX is jumping higher here right above some near-term support at $6.50 with above-average volume. This move is quickly pushing shares of LIOX within range of triggering a major breakout trade. That trade will hit if LIOX manages to take out Tuesday's intraday high of $7.07 to its 52-week high at $7.09 with high volume.
Traders should now look for long-biased trades in LIOX as long as it's trending above some near-term support levels at $6.50 to $6.25 or above its 50-day at $5.90 and then once it sustains a move or close above those breakout levels with volume that hits near or above 521,877 shares. If that breakout hits soon, then LIOX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $8 to $10. 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.