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4 Health Care Stocks Under $10 Spiking 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.
Arena Pharmaceuticals (ARNA) is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing oral drugs that target G protein-coupled receptors, in four therapeutic areas: cardiovascular, central nervous system, inflammatory and metabolic diseases. This stock is trading up 5.8% to $9.91 in recent trading.
Today’s Range: $9.39-$10.05
52-Week Range: $1.27-$13.50
Volume: 12.7 million
Three-Month Average Volume: 11.3 million
From a technical perspective, ARNA is ripping to the upside here with above-average volume. This move has started to push ARNA into breakout territory, since the stock has pushed above some past overhead resistance levels at $9.42 to $9.44.
Traders should now watch for the next major breakout trade to hit in ARNA. That trade will trigger once ARNA clears some past overhead resistance at $10.35 with high volume. Traders should now look for long-biased trades in ARNA as long as it’s trending above those breakout levels, and then once it sustains a move or close above $10.35 with volume that hits near or above 11.3 million shares. If that breakout triggers soon, then ARNA will setup to re-test or possibly take out its next major overhead resistance levels at $12.07 to $13.50.
Chelsea Therapeutics (CHTP) is a specialty pharmaceutical company focused on the acquisition, development and commercialization of innovative pharmaceutical products. This stock is trading up 3.8% to $1.34 in recent trading.
Today’s Range: $1.29-$1.38
52-Week Range: $0.70-$5.74
Three-Month Average Volume: 461,855
From a technical perspective, CHTP is moving notably higher here with above-average volume. This move is quickly pushing CHTP within range of triggering a near-term breakout trade. That trade will hit once CHTP manages to take out some near-term overhead resistance levels at $1.39 to $1.48, and then once it clears $1.54 with high volume.
Traders should now look for long-biased trades in CHTP as long as it’s trending above $1.29, and then once it sustains a move or close above those breakout levels with volume that hits near or above 461,855 shares. If that breakout triggers soon, then CHTP will setup to re-test or possibly take out its nest major overhead resistance levels at $1.83 to $1.99, or possibly even its 200-day moving average at $2.24.
InterMune (ITMN) a biotechnology company focused on the research, development and commercialization of innovative therapies in pulmonology and orphan fibrotic diseases. This stock is trading up 6.6% to $8.50 in recent trading.
Today’s Range: $8.10-$8.65
52-Week Range: $7.21-$27.23
Volume: 1.1 million
Three-Month Average Volume: 1.2 million
From a technical perspective, ITMN is rocketing higher here back above its 50-day moving average of $8.39 with decent volume. This move is coming after ITMN recently dropped from $10.21 to a low of $7.81.
Traders should now look for long-biased trades in ITMN as long as it’s trending above its 50-day with strong upside volume flows. I would consider any upside volume day that registers near or above 1,208,910 shares as bullish. If ITMN can sustain that trend, then look for this stock to re-test or possibly take out its next major overhead resistance levels at $9.83 to $10.21 in the near future. Any high-volume move above $10.21 would then put $11.54 to $12.50 into focus.
Progenics Pharmaceuticals (PGNX) is a biopharmaceutical company that develops and commercializes innovative therapeutic products to treat the unmet medical needs of patients with debilitating conditions and life-threatening diseases. This stock is trading up 5.8% to $3.24 in recent trading.
Today’s Range: $3.06-$3.28
52-Week Range: $2.38-$11.34
Three-Month Average Volume: 329,631
From a technical perspective, PGNX is ripping higher here with light volume. This stock has been downtrending badly for the last three months, with shares plunging from $6.50 to its recent low of $2.38. During that downtrend, shares of PGNX have been consistently making lower highs and lower lows, which is bearish technical price action. That said, PGNX has started to rebound the last few weeks with the stock now making higher lows and higher highs, which is bullish action.
Traders should now look for long-biased trades in PGNX if it can manage to trigger a near-term breakout trade above some resistance levels at $3.40 to $3.88 with high volume. Look for a sustained move or close above those levels with volume that hits near or above 329,631 shares. If that breakout triggers soon, then PGNX will setup to re-test or possibly take out its next major overhead resistance levels at $4.36 to $4.75.
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.