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4 Stocks Under $10 Making Big Moves - 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 upgrade.
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.
Digital Generation (DGIT) is an ad management and distribution platform. DG helps advertisers engage with consumers across television and online media, while delivering ad campaigns. This stock is trading up 7.5% at $9.72 in recent trading.
Today’s Range: $9.48-$10.06
52-week Range: $7.51-$35.47
Volume: 1.75 million
Three-Month Average Volume: 391,141
Shares of DGIT are ripping higher today after Karen Finerman said on last night’s CNBC Fast Money show that the stock might have bottomed with shares down over 70% within the last year.
From a technical perspective, DGIT is gapping up sharply here back above its 50-day moving average of $9.38 with monster volume. This move is quickly pushing DGIT within range of triggering a breakout trade. That trade will hit once DGIT takes out some near-term overhead resistance at $9.85 to $9.99 with high-volume. At last check, DGIT has hit a daily high of $10.06 and has now pulled back to near $9.70.
Traders should look for long-biased trades if DGIT can sustain a move or close above $9.99 to $10.06 with volume that’s near or above 391,141 shares. If we get that action today or soon, look for DGIT to re-test its next significant overhead resistance levels near $10.70 to $12 in the near future. On the flipside, I would avoid going long this stock if it fails to trigger that breakout, and then closes back below $8.86 with heavy volume.
FormFactor (FORM) designs, develops, manufactures, sells and supports precision, semiconductor wafer probe card products and solutions. This stock is trading up 7.2% at $6.18 in recent trading.
Today’s Range: $5.90-$6.38
52-Week Range: $4.68-$9.88
Three-Month Average Volume: 495,678
Shares of FORM are moving sharply to the upside today after the company raised its second quarter revenue outlook, citing strong demand of Dynamic Random-Access Memory and Flash memory.
From a technical perspective, FORM is gapping up sharply here back above its 200-day moving average of $5.93 on above average volume. This move is quickly pushing the stock within range of triggering a near-term breakout trade. That trade will hit once FORM clears $6.34 to $6.38 with high volume. That $6.38 area is today’s intraday high.
Traders should now look for long-biased trades if FORM can manage to sustain a move or close above those levels with volume that’s near or above 495,678 shares. If we get that action soon, then I expect to see FORM challenge its May high of $6.75 and potentially take that level out to the upside.
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 3.8% at $6.43 in recent trading.
Today’s Range: $6.05-$6.58
52-Week Range: $1.23-$7.02
Volume: 13.2 million
Three-Month Average Volume: 14.2 million
From a technical perspective, ARNA is moving modestly higher here off some near-term support at $6 with decent volume. This move is quickly pushing ARNA within range of a major breakout trade. That trade will hit once ARNA takes out its May high of $7.01 with high volume.
Traders should now look for long-biased trades if ARNA can sustain a move or close over $7.01 with volume that’s near or above 14.2 million shares. If we get that move soon, look for ARNA to hit $8 to $9 in the near future. On the flipside, I would avoid this stock or look for short-biased trades if it moves below some major near-term support at $5.78 to $5.53 with high volume.
Silvercorp (SVM) is engaged in the acquisition, exploration, development and mining of high-grade silver-related mineral properties in China and Canada. This stock is trading up 3.5% at $6.17 in recent trading.
Today’s Range: $5.74-$6.17
52-Week Range: $4.89-$12.12
Three-Month Average Volume: 1.5 million
From a technical perspective, SVM is moving modestly higher here with below average volume. This move is pushing SVM within range of a near-term breakout trade. That trade will hit once SVM takes out some near-term overhead resistance at $6.19 and then its 50-day moving average of $6.37 with high volume.
Traders should look for long-biased trades if SVM can manage to sustain a move or close above those levels with volume that’s near or above 1,500,720 shares. If we get that action soon, look for SVM to challenge $7.10 or possibly its 200-day moving average of $7.34 in the near future.
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.