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4 Stocks Under $5 Making Big Up 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 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 $5 that are making large moves to the upside today.
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TranSwitch (TXCC) designs, develops and supplies semiconductor solutions that provide core functionality for voice, data and video communications equipment for network, enterprise and customer premises applications. This stock is trading up 11.8% at $1.23 in recent trading.
Today’s Range: $1.10-$1.23
52-Week Range: $1.04-$3.65
Three-Month Average Volume: 87,494
From a technical perspective, TXCC is ripping here with heavy volume right near some previous support at $1.04. This move has also pushed TXCC into breakout territory, since the stock is moving above some near-term overhead resistance at $1.20.
Traders should now look for long-biased trades as long as TXCC is trending above $1.20 with strong upside volume flows. I would consider any upside volume day that registers near or above 87,494 shares as bullish. If we continue to see TXCC hold that trend, then this stock could make an explosive move back towards $1.39 to $1.56, or possibly even $1.80 to $1.90. A move to $1.80 or higher will only have a chance of happening if TXCC takes out its 50-day moving average at $1.56 with volume.
Keryx Biopharmaceuticals (KERX) is a biopharmaceutical company focused on the acquisition, development and commercialization of pharmaceutical products for the treatment of cancer and renal disease. This stock is trading up 6.5% at $2.15 in recent trading.
Today’s Range: $2.05-$2.18
52-Week Range: $1.28-$5.19
Volume: 2.1 million
Three-Month Average Volume: 2.4 million
From a technical perspective, KERX is ripping to the upside here with decent volume. This move has pushed the stock into breakout territory, since shares are moving above some near-term overhead resistance at $2.12.
Traders should now look for long-biased trades if KERX can manage trigger a much bigger breakout trade. That trade will hit once KERX takes out some past overhead resistance at $2.34, and then its 200-day moving average of $2.65 with high volume. Look for a sustained move or close above those levels with volume that’s near or above 2.4 million shares. If we get that action soon, then KERX will enter its gap-down zone from back in April that took the stock from over $5 to below $2.
Mela Sciences (MELA) is a medical device company focused on the commercialization of its product, MelaFind, and the further design and development of MelaFind and its technology. This stock is trading up 4% at $3.50 in recent trading.
Today’s Range: $3.45-$3.65
52-Week Range: $1.75-$6.96
Three-Month Average Volume: 311,564
From a technical perspective, MELA is gapping up here after the stock gapped up Monday back above its 50-day moving average of $3.12. This gap today has also started to push the stock within range of breaking out above some near-term overhead resistance at $3.55. At last check, MELA has hit an intraday high of $3.65 and volume is just a bit below its three-month average action of 311,564 shares.
Traders should now look for long-biased trades as long as MELA is trending above that $3.55 level, or above its daily high of $3.65 with strong upside volume flows. I would consider any upside volume day that registers near or above 311,564 shares as bullish. If we see MELA maintain that trend, then this stock should easily hit $3.98 to $4.69 in the near future.
Keep in mind that it will only have a shot at $4.69 if it takes out its 200-day moving average of $4.26 with volume.
GenMark Diagnostics (GNMK) is a molecular diagnostics company focused on developing and commercializing of its eSensor detection technology. This stock is trading up 5.8% to $5.30 in recent trading.
Today’s Range: $5.02-$5.30
52-Week Range: $3.63-$6.50
Three-Month Average Volume: 90,843
From a technical perspective, GNMK is ripping to the upside here with heavy volume, and the stock has started to break out above some near-term overhead resistance at $5.10.
Traders should continue to look for long-biased trades as long as GNMK is trending above $5.10 with strong upside volume flows. I would consider any upside volume day that registers near or above 90,843 shares as bullish. If we continue to see GNMK hold a strong uptrend above $5.10, then this stock has a great chance of re-testing and possibly taking out its next significant overhead resistance levels at $5.77 to $6.49.
To see more stocks 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.