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4 Stocks Under $5 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 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.
Sprint Nextel (S), together with its subsidiaries, offers a range of wireless and wireline communications products and services to individual consumers, businesses, government subscribers, and resellers in the U.S., Puerto Rico and the U.S. Virgin Islands. This stock is trading up 5.7% to $3.66 in recent trading.
Today’s Range: $3.48-$3.68
52-Week Range: $2.10-$5.29
Volume: 38 million
Three-Month Average Volume: 52 million
From a technical perspective, S is ripping higher here and breaking out above some near-term overhead resistance at $3.48 with decent volume. This breakout is pushing S into new highs for 2012 and is moving the stock within range of an even bigger breakout trade. That trade will hit once S takes out some past overhead resistance at $3.90 with high volume.
Traders should now look for long-biased trades as long as S maintains a trend over $3.48, and once it takes out $3.90 with high volume. Look for a sustained move or close above $3.90 with volume that’s tracking in near or above 52 million shares. If we get that action soon, then S has a great chance of trading up towards the lower end of its gap-down from 2011 near $4.50.
Sprint, as of the most recently reported quarter, was one of David Einhorn's Greenlight Capital holdings.
NuPathe (PATH) is a specialty pharmaceutical company focused on the development and commercialization of therapeutics for diseases of the central nervous system, including neurological and psychiatric disorders. This stock is trading up 9.2% at $4.01 in recent trading.
Today’s Range: $3.76-$4.12
52-Week Range: $1.52-$7.42
Three-Month Average Volume: 30,648
Shares of PATH are moving notably higher today after the company said it expects acceptance of its resubmission of a migraine treatment by the U.S. Food and Drug Administration.
From a technical perspective, PATH is gapping up sharply here with above-average volume. This move is quickly pushing the stock within range of triggering a near-term breakout trade. That trade will hit once PATH takes out some near-term overhead resistance at $4.01 to $4.25 with high volume.
Traders should now look for long-biased trades once PATH sustains a move or close above $4.01 to $4.25 with volume that’s near or above 30,648 shares. At last check, PATH has hit an intraday high of $4.01 and volume is well above its three-month average of 30.648 shares. If that breakout triggers soon, then PATH will have a great chance of re-testing and possibly taking out its next major overhead resistance level at $5.10.
EnergySolutions (ES) is a provider of a range of nuclear services to government and commercial customers. This stock is trading up 4.2% to $1.70 in recent trading.
Today’s Range: $1.68-$1.75
52-Week Range: $1.43-$5.43
Three-Month Average Volume: 1.9 million
Shares of ES are ripping higher today after the company announced that it is considering the sale of its UK and European business which holds a contract with the Nuclear Decommissioning Authority to manage and operate 22 of the UK’s Magnox nuclear reactor fleet.
From a technical perspective, ES is gapping notably higher here with light volume. This move is coming off of some near-term support at around $1.60, and it’s pushing the stock within range of triggering a near-term breakout trade . That trade will hit once ES takes out some near-term overhead resistance at $1.87 with high-volume.
Traders should now look for long-biased trades once ES sustains a move or close over $1.87 with volume that’s near or above 1.9 million shares. If we get that action soon, then ES could easily bounce back towards its 50-day moving average of $2.47. Keep in mind there’s very little overhead resistance from $1.87 to $2.47, since this stock gapped down and plunged through those levels in early June.
Dex One (DEXO) is a marketing services company that helps local businesses to reach consumers. It offers local businesses personalized marketing consulting services and exposure across a network of local marketing products, including its print, online and mobile yellow pages and search solutions, as well as search engines. This stock is trading up 3.4% at $1.21 per share in recent trading.
Today’s Range: $1.15-$1.24
52-Week Range: $0.36-$2.63
Three-Month Average Volume: 217,898
From a technical perspective, DEXO is moving modestly higher here with decent volume. This move is pushing the stock within range of triggering a major breakout trade. That trade will hit once DEXO takes out its 200-day moving average of $1.25, and then some past overhead resistance levels at $1.33 to $1.53 with high volume.
Traders should now look for long-biased trades once DEXO clears its 200-day, and then once it sustains a move or close over $1.33 to $1.53 with volume that’s near or above 217,898 shares. If we get that action soon, then DEXO could easily re-test and possibly take out its next major overhead resistance levels at $1.99 to $2.17. Keep in mind that this stock will not look as attractive from the long side unless it holds a high-volume trend over its 200-day moving average.
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.