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4 Stocks Under $5 Moving 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 $5 that are making large moves to the upside today.
Acura Pharmaceuticals (ACUR) is a pharmaceutical company engaged in the research, development and manufacture of product candidates providing abuse deterrent features and benefits. This stock is trading up 8.4% to $1.67 in recent trading.
Today’s Range: $1.50-$1.80
52-Week Range: $1.40-$5.49
Three-Month Average Volume: 63,543
From a technical perspective, ACUR is bouncing hard to the upside here around some previous support $1.44 with light volume. This move is quickly pushing ACUR within range of triggering a near-term breakout trade. That trade will hit once ACUR manages to take out some near-term overhead resistance at $1.84 to $2, and then its gap down day high from August of $2.20 with high volume.
Traders should now look for long-biased trades in ACUR as long as it’s trending above its 50-day at $1.69, and then once it sustains a move or close above those breakout levels with volume that hits near or above 63,543 shares. If that breakout triggers soon, then ACUR will have a chance to re-fill some of its gap down zone that started at around $3.
Dehaier Medical Systems
Dehaier Medical Systems (DHRM) is engaged in the development and distribution of medical devices. This stock is trading up 12.6% to $2.32 in recent trading.
Today’s Range: $2.12-$2.33
52-Week Range: $1.26-$3.95
Three-Month Average Volume: 60,792
From a technical perspective, DHRM is continuing to trend higher today with above-average volume, after this stock moved back above its 200-day moving average of $2 on Wednesday. This action is quickly pushing DHRM within range of triggering a near-term breakout trade. That trade will hit once DHRM manages to clear some near-term overhead resistance at $2.40 to $2.60 with high volume.
Traders should now look for long-biased trades in DHRM as long as its trending above its 200-day, and then once it sustains a move or close above those breakout levels with volume that hits near or above 60,792 shares. If that breakout triggers soon, then look for DHRM to re-test or possibly take out its next significant overhead resistance levels at $2.99 to $3.95.
DragonWave (DRWI) is a producer of high-capacity packet microwave solutions which transmit voice, video and data over broadband connections. The principal application of DragonWave's products is wireless network backhaul. This stock is trading up 13% to $2.49 in recent trading.
Today’s Range: $2.39-$2.72
52-Week Range: $2.05-$5.50
Volume: 1.1 million
Three-Month Average Volume: 117,509
Shares of DRWI are skyrocketing today after the company said its fiscal second-quarter loss narrowed as revenue improved and a gain from its recent acquisition of Nokia Siemens Networks’ microwave transport business boosted results.
From a technical perspective, DRWI is gapping up sharply higher here back above its 50-day moving average of $2.33 with monster volume. This move has also pushed DRWI into breakout territory, since the stock has flirted with some near-term overhead resistance levels at $2.26 to $2.59. At last check, DRWI has hit an intraday high of $2.72 and volume is well above its three-month average action of 117,509 shares.
Traders should now look for long-biased trades in DRWI as long as it’s trending above its 50-day at $2.33, and then once it sustains a move or close above some resistance at $2.85 with volume that hits near or above 117,509 shares. If DRWI takes out $2.85 soon with volume, then this stock will setup to re-test or possibly take out its next significant overhead resistance levels at $3.20 to $3.30. Any high-volume move above those levels will give DRWI a chance to tag $4 in the near future.
Canadian Solar (CSIQ) designs, develops, manufactures and sells solar cell and solar module products that convert sunlight into electricity. This stock is trading up 5.7% to $2.78 in recent trading.
Today’s Range: $2.64-$2.82
52-Week Range: $2.07-$4.74
Three-Month Average Volume: 375,131
Share of CSIQ are ripping higher today after the Obama administration upheld tariffs on Chinese solar panels.
From a technical perspective, CSIQ is bouncing higher here with light volume right near some previous support levels at $2.56 to $2.58. This move is quickly pushing CSIQ within range of triggering a near-term breakout trade. That trade will hit once CSIQ manages to take out its 50-day moving average of $2.85 with high volume.
Traders should now look for long-biased trades in CSIQ once it manages to clear its 50-day with volume that hits near or above 375,131 shares. If that breakout triggers soon, then look for CSIQ to re-test or possibly take out its next significant overhead resistance levels at $3.25 to $3.40. Any high-volume move above those levels could setup CSIQ for a run back to $3.70 or $4 in the near future.
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.