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3 Stocks Under $5 Ripping 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 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.
Astex Pharmaceuticals (ASTX) engages in the discovery and development of small molecule therapeutics with a focus on oncology and hematology. This stock is trading up 14.6% to $2.75 in recent trading.
Today’s Range: $2.42-$2.80
52-Week Range: $1.51-$2.95
Volume: 1.1 million
Three-Month Average Volume: 637,953
From a technical perspective, ASTX is ripping huge to the upside here right off some near-term support at $2.40 with monster volume. This move has pushed ASTX into breakout territory, since it’s taken out some near-term overhead resistance at $2.60. Traders should now watch for the next major breakout trade to trigger for ASTX. That trade will hit once ASTX takes out some past overhead resistance levels at $2.78 to $2.95 with high volume.
Traders should now look for long-biased trades once ASTX sustains a move or close above those levels with volume that’s near or above 637,953 shares. At last check, ASTX has hit an intraday high of $2.80 and volume is well above its three-month average action of 637,953 shares. If that breakout triggers soon, then look for ASTX to re-test and possibly take out its next major overhead resistance levels at $3.21 to $3.35.
Exide Technologies (XIDE) is a provider of stored electrical energy solutions, and is a manufacturer and supplier of lead-acid batteries for transportation and industrial applications worldwide. This stock is trading up 5.9% at $3.38 in recent trading.
Today’s Range: $3.18-$3.44
52-Week Range: $2.22-$5.89
Three-Month Average Volume: 726,744
From a technical perspective, XIDE is ripping higher here right off its 50-day moving average of $3.15 with light volume. This move has pushed XIDE into breakout territory, since the stock has taken out some near-term overheated resistance that also sits at $3.15.
Traders should now look for long-biased trades once XIDE triggers its next major breakout trade. That trade will hit once XIDE takes out some near-term overhead resistance levels at $3.53 to $3.77 with high volume. Look for a sustained move or close above those levels with volume that hits near or above 726,744 shares. If that breakout triggers soon, then XIDE could well be on its way towards its next major overhead resistance level at $4.15 to $4.50.
Keep in mind that you can look for long trades in XIDE as long as it holds its trend over $3.15 and simply anticipate that breakout.
Merge Healthcare (MRGE) develops software solutions that facilitate the sharing of images to create an electronic healthcare experience for patients and physicians. This stock is trading up 5.2% at $3.19 in recent trading.
Today’s Range: $3.04-$3.22
52-Week Range: $2.20-$7.23
Three-Month Average Volume: 532,800
From a technical perspective, MRGE is bouncing higher here right off some near-term support at $3.03 with light volume. This bounce is also coming right near its 50-day moving average of $2.92.
Traders should now look for long-biased trades once MRGE triggers its next major breakout trade. That trade will hit once MRGE takes out some near-term overhead resistance levels at $3.25 to $3.30, and then $3.54 with high volume. Look for a sustained move or close above those levels with volume that’s near or above 532,800 shares. If that breakout triggers soon, then MRGE could re-fill a previous gap back to $4, and possibly even tag its 200-day moving average of $4.41. Traders should key off of $2.84 to $2.92 for near-term support levels.
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.