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4 Stocks Under $10 Soaring in a Weak Tape - 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.
Mela Sciences (MELA) is a medical device company focused on the design, development and commercialization of a non-invasive, point-of-care (in the doctor’s office) instrument to assist in the early diagnosis of melanoma. This stock is trading up 6.7% to $2.84 in recent trading.
Today’s Range: $2.59-$2.89
52-Week Range: $1.75-$6.96
Three-Month Average Volume: 325,666
From a technical perspective, MELA is bouncing today off of some previous support near $2.50, and off of oversold conditions. The current relative strength index reading for MELA is 36.98, which indicates an oversold stock. This move is now pushing MELA within range of triggering a near-term breakout trade. That trade will hit once MELA takes out some near-term overhead resistance at $3.12 with high volume.
Traders should now look for long-biased trades in MELA once it sustains a move or close above $3.12 with volume that’s near or above 325,666 shares. If we get that action soon, then MELA could make a monster bounce back towards its 50-day moving average of $3.93 or even its 200-day moving average of $4.22.
Golden Minerals (AUMN) is a mineral exploration company with a diversified portfolio of precious metals and other mineral exploration properties located in or near the traditional precious metals producing regions of Mexico and South America. This stock is trading up 10.3% at $3.84 in recent trading.
Today’s Range: $3.41-$3.89
52-Week Range: $3.24-$20.99
Three-Month Average Volume: 266,002
From a technical perspective, AUMN is bouncing hard here off of some previous support levels near $3.24, and off of extremely oversold conditions. The current RSI reading for AUMN is 35.08, which indicates an oversold stock. Nothing says oversold more than the chart for AUMN, can shares have dropped from its February high of $10.60 to its recent low of $3.24.
Traders should now look for long-biased traders if AUMN can manage to trigger a near-term breakout trade. That trade will hit once AUMN takes out some near-term overhead resistance at $3.98 with high volume. Look for a sustained move or close above $3.98 with volume that’s near or above 266,002 shares. If we get that action soon, look for AUMN to spike big, possibly back toward some resistance at $5 or even its 50-day moving average of $6.08.
Synta Pharmaceuticals (SNTA) is a biopharmaceutical company. Synta Pharmaceuticals is focused on discovering, developing, and commercializing small molecule drugs to severe the medical conditions of the patients with cancer and inflammatory diseases. This stock is trading up 4.5% at $5.03 in recent trading.
Today’s Range: $4.58-$5.08
52-Week Range: $3.02-$5.74
Three-Month Average Volume: 304,528
Shares of SNTA are ripping higher today after Jefferies said it’s keeping its buy rating on the stock with a $7 price target. Jefferies said it believes the Phase 2b lung cancer trial data could lead to a rise in the price of SNTA and said it would be a buyer of the stock before the June data release.
From a technical perspective, SNTA is continuing its upside momentum here, after the stock ripped sharply higher on Thursday on above average volume. On Thursday, SNTA started to flirt with a major breakout after it hit an intraday high of $5.10, which pushed it above some past overhead resistance at $4.94.
Traders should now look for the next big breakout trade in SNTA, which will trigger once it takes out $5.10 to $5.25 with high-volume. Look for volume on a sustained move or close above those levels that hits near or above 304,528 shares. If we get that action today or soon, look for SNTA to challenge its February high of $5.74 and potentially take that level out to the upside. Keep in mind that $5.74 is the 52-week high for SNTA, so a close above that level would be very bullish.
Richmont Mines (RIC) is a gold company. Richmont Mines is engaged in the production of gold from its Beaufor Mine and Island Gold Mine, two of its three material properties. This stock is trading up 8.5% at $6.37 in recent trading.
Today’s Range: $5.95-$6.45
52-Week Range: $4.91-$13.40
Three-Month Average Volume: 271,011
From a technical perspective, RIC is booming to the upside here 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 RIC takes out some near-term overhead resistance at $6.54, and then takes out its 50-day moving average at $6.74 with high volume.
Traders should now look for long-biased trades if RIC can sustain a move or close above those levels with volume that’s near or above 271,011 shares. If we get that action soon, look for RIC to tag its next significant overhead resistance levels at $7.38 to $8.
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.