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3 Tech Stocks Under $10 to Watch - 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.
Meru Networks (MERU), together with its subsidiaries, provides virtualized wireless local area network solutions in the Americas, Europe, the Middle East, Africa and the Asia Pacific. This stock closed up 2.8% to $4.01 on Thursday.
Thursday's Range: $3.83-$4.07
52-Week Range: $1.42-$6.96
Three-Month Average Volume: 366,658
From a technical perspective, MERU bounced notably higher here right above its 200-day moving average of $3.70 with lighter-than-average volume. This stock recently downtrended badly from its high of $6.96 to its low of $3.16. During that move shares of MERU were consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of MERU have started to rebound off that $3.16 low and it's now quickly moving within range of triggering a near-term breakout trade. That trade will hit if MERU manages to clear some near-term overhead resistance at $4.24 with high volume.
Traders should now look for long-biased trades in MERU as long as it's trending above its 200-day at $3.70 or above some more key support at $3.50, and then once it sustains a move or close above $4.24 with volume that hits near or above 366,658 shares. If that breakout triggers soon, then MERU will set up to re-test or possibly take out its 50-day moving average at $5.16. Any high-volume move above its 50-day will then put its next major overhead resistance levels at $5.50 to $6 into range for shares of MERU.
Novatel Wireless (NVTL) is a provider of wireless broadband access solutions for the worldwide mobile communications market. This stock closed up 5.5% to $3.63 on Thursday.
Thursday's Range: $3.36-$3.66
52-Week Range: $1.17-$3.71
Three-Month Average Volume: 293,777
From a technical perspective, NVTL bounced sharply higher here with above-average volume. This stock has been uptrending strong for the last month, with shares soaring higher from its low of $2.20 to its recent high of $3.71. During that move, besides one super spike down to $2.85, shares of NVTL have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of NVTL within range of triggering a major breakout trade. That trade will hit if NVTL manages to take out its 52-week high at $3.71 with high volume.
Traders should now look for long-biased trades in NVTL as long as it's trending above some key near-term support at $3.20 and then once it sustains a move or close above its 52-week high at $3.71 with volume that hits near or above 293,777 shares. If that breakout triggers soon, then NVTL will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $4.42 to $5.50.
Emcore (EMKR) is a provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and terrestrial solar power markets. This stock closed up 3.5% to $3.51 on Thursday.
Thursday's Range: $3.40-$3.56
52-Week Range: $3.32-$6.75
Three-Month Average Volume: 292,175
From a technical perspective, EMKR bounced notably higher here right above some near-term support at $3.34 with decent upside volume. This stock had been downtrending badly for the last four months, with shares dropping from its high of $6.75 to its recent low of $3.32. During that downtrend, shares of EMKR were making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of EMKR have now formed a double bottom chart pattern at $3.32 to $3.34 and the downtrend volatility has stopped. If EMKR can hold that double bottom, then this stock could be setting up for a sharp move higher.
Traders should now look for long-biased trades in EMKR as long as it's trending above those key support levels at $3.34 to $3.32 and then once it sustains a move or close above Thursday's high of $3.56 with volume that hits near or above 292,175 shares. If we get that move soon, then EMKR will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $4.32 to $4.36 or its 200-day moving average at $4.95.
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.