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4 Stocks Under $10 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.
QLT (QLTI) is a biotechnology company engaged in the development and commercialization of therapies for the eye. This stock is trading up 4.5% at $8.29 in recent trading.
Today’s Range: $7.94-$8.36
52-Week Range: $5.35-$8.10
Three-Month Average Volume: 188,516
From a technical perspective, QLTI is marching to the upside here with strong volume, and the stock has started to break out above some near-term overhead resistance at $8.10. This breakout has pushed QLTI into new 52-week-high territory , which is bullish technical price action.
Traders should now look for long-biased trades as long as QLTI maintains its trend over $8.10, and once it triggers its next major breakout trade. That trade will trigger once QLTI takes out some past overhead resistance at $8.87 with high-volume. Look for a sustained move or close over $8.87 with volume that’s near or above 188,516 shares. If that breakout triggers soon, then QLTI should easily re-test and possibly trade north of $10.
Sierra Wireless (SWIR) is engaged in the development of wireless technologies and solutions. Sierra Wireless provides wireless solutions for the machine-to-machine and mobile computing markets. This stock is trading up 4.5% at $9.67 in recent trading.
Today’s Range: $9.29-$9.67
52-Week Range: $6.02-$11.88
Three-Month Average Volume: 143,108
From a technical perspective, SWIR is jumping sharply to the upside here with decent volume. This move is showing some follow-through momentum buying after the stock bounced right off its 50-day moving average of $8.79 with decent volume on Monday. This spike higher today is also pushing SWIR within range of triggering a major breakout trade. That trade will trigger once SWIR takes out some near-term overhead resistance levels at $9.53 to $9.77 with high-volume.
Traders should now look for long-biased trades once SWIR sustains a move or close above $9.53 to $9.77 with volume that’s near or above 143,108 shares. If we get that action soon, then SWIR will setup to re-test and possibly take out its next major overhead resistance levels of $12 to $12.50. Keep in mind that the only way SWIR can reach those levels is if the stock maintains a trend over $9.77 with strong upside volume flows.
Sierra was included on a list of 13 Tech Stocks to Buy in 2012.
Idenix Pharmaceuticals (IDIX) is a biopharmaceutical company engaged in the discovery and development of drugs for the treatment of human viral diseases with operations in the U.S. and Europe. This stock is trading up 3.9% to $9.96 in recent trading.
Today’s Range: $9.58-$9.96
52-Week Range: $4.60-$15.25
Three-Month Average Volume: 1.5 million
From a technical perspective, IDIX is bouncing notably here right near its 50-day moving average of $9.46 with light volume. This stock recently ran into some heavy resistance at around $11.30, but shares of IDIX are still well within an uptrend that started back in May at $7.36. During that uptrend, shares of IDIX have been making mostly higher lows and higher highs, which is bullish technical price action. The recent pullback for IDIX to its 50-day moving average could be representing a solid buying opportunity.
Traders should now look for long-biased trades as long as IDIX can hold above both its 50-day at $9.46 and its 200-day at $9.10 with strong upside volume flows. I would consider any upside volume day that registers near or above 1.5 million shares as bullish. If those levels hold, then IDIX will have a great chance of re-testing and possibly taking out $11.30.
As of the most recently reported period, IDIX was one of Seth Klarman's Baupost Group holdings.
Fuel Tech (FTEK) is an integrated company, which uses a range of advanced technologies to provide boiler optimization, improvement and air pollution reduction and control solutions to utility and industrial customers globally. This stock is trading up 16.2% to $5.31 cents per share in recent trading.
Today’s Range: $4.84-$5.43
52-Week Range: $3.47-$7.46
Three-Month Average Volume: 192,970
Shares of FTEK are soaring today after the company was awarded a $36.6 million air pollution control contract by a major utility company in Chile
From a technical perspective, FTEK is gapping up huge here with above average volume. This move is coming off some near-term support at $4.51, and it’s pushing the stock within range of a major breakout trade. That trade will hit once FTEK takes out its 200-day moving average of $5.41 with high volume.
Traders should now look for long-biased trades once FTEK sustains a move or close over $5.41 with volume that’s near or above 192,970 shares. At last check, FTEK has hit an intraday high of $5.43 and volume is well above its three-month average action of 192,970 shares. If that breakout triggers soon, then look for FTEK to re-test and possibly take out its next significant overhead resistance levels at $5.94 to $6.50.
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.