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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.
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MetroPCS Communications (PCS) is a facilities-based wireless broadband mobile communications provider in the U.S. This stock is trading up 3.9% to $6.57 in recent trading.
Today’s Range: $6.32-$6.65
52-Week Range: $5.53-$17.39
Volume: 2.15 million
Three-Month Average Volume: 6.6 million
From a technical perspective, PCS is bouncing hard here right off its 50-day moving average of $6.35 with light volume. This move is quickly pushing PCS within range of triggering a near-term breakout trade.
That trade will hit once PCS takes out $6.63 to $6.82 with high volume. At last check, PCS has hit an intraday high of $6.65 and volume is around 4 million shares below its three-month average action of 6,555,020 shares.
Traders should now look for long-biased trades once PCS manages to sustain a move or close above $6.63 to $6.82 with volume that’s near or above 6.6 million shares. If we get that action soon, then PCS could re-test its 200-day moving average of $8.28. I would use some major near-term support at $6.23 as my exit point of the breakout fails or doesn’t trigger.
MetroPCS was one of the 10 Worst-Performing S&P 500 Stocks of the Second Quarter.
Inventure Foods (SNAK) is a marketer and manufacturer of healthy/all-natural and indulgent specialty snack food brand. This stock is trading up 3.5% to $7.08 in recent trading.
Today’s Range: $6.72-$7.18
52-Week Range: $3.50-$6.93
Three-Month Average Volume: 120,298
Traders should continue to look for long-biased trades as long as SNAK is trending above those key breakout levels with strong upside volume flows. I would consider any upside volume day that registers near or above 120,298 shares as bullish. If we continue to see SNAK maintain that trend, then this stock could hit $8 to $10 in the near future.
Southwest Airlines (LUV) operates Southwest Airlines, a passenger airline, which provides scheduled air transportation in the United States. This stock is trading up 4.8% at $9.69 in recent trading.
Today’s Range: $9.44-$9.77
52-Week Range: $7.15-$11.07
Volume: 7.3 million
Three-Month Average Volume: 9.8 million
From a technical perspective, LUV is moving notably higher here with decent volume and its entered breakout territory now that it’s moved above $9.40. This move is pushing the stock within range of triggering another major breakout trade. That trade will hit once LUV takes out some past overhead resistance at $10.04 with high-volume.
Traders should look for long-biased trades once LUV sustains a move or close above $10.04 with volume that’s near or above 9.8 million shares. If we get that action soon, then LUV could continue its uptrend and trade back toward its 2011 July high if $11.62.
I would avoid any long trades in LUV if it were to move back below the recent breakout point of $9.40 with heavy volume.
Sypris Solutions (SYPR) is a provider of outsourced services and specialty products. This stock is trading up 4.8% to $7.53 in recent trading.
Today’s Range: $7.16-$7.58
52-Week Range: $2.75-$7.63
Three-Month Average Volume: 97,549
From a technical perspective, SYPR is moving sharply higher here right near some previous support levels at around $7 with light volume. This move is quickly pushing SYPR within range of triggering a major breakout trade. That trade will hit once SYPR takes out some near-term overhead resistance at $7.63 with high volume.
Traders should now look or long-biased trades once SYPR sustains a move or close above $7.63 with volume that’s near or above 97,549 shares. Any move above $7.63 will be very bullish since it will mean that SYPR is trading in new 52-week-high territory. If we get that action soon, then this stock will have a great chance of continuing its uptrend towards $10 in the near future.
On the flipside, I would avoid this stock or look for short-biased trades if it fails to hold that breakout, and then drops below some near-term support at $6.91 with high volume.
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.