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4 Stocks Under $5 Soaring 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 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 $5 that are making large moves to the upside today.
FuelCell Energy (FCEL) is an integrated fuel cell company that designs, manufactures, sells, installs and services ultra-clean, stationary fuel cell power plants for distributed baseload power generation. This stock is trading up 12.6% to $1.25 in recent trading.
Today’s Range: $1.11-$1.26
52-Week Range: $0.80-$1.95
Volume: 3.4 million
Three-Month Average Volume: 2.2 million
From a technical perspective, FCEL is skyrocketing here on monster volume. This move has already triggered a breakout once FCEL took out some near-term overhead resistance at $1.07 to $1.15. Now this stock is trending right near its 50-day moving average of $1.26, which also happens to be the daily high.
Traders should now look for long-biased trades as long as FCEL is trending above its 50-day and above some near-term overhead resistance levels at $1.30 to $1.36 with high volume. I would consider any upside volume day that registers near or above 2.2 million shares as bullish. If we get that action soon, look for FCEL to hit $1.60 to $1.80 or higher in the near future.
I also featured FuelCell recently in "5 Stocks Feeling the Insider Love."
Zogenix (ZGNX) is a specialty pharmaceutical company with two product candidates in late-stage development for the treatment of central nervous system disorders and pain. This stock is trading up 13.2% to $1.80 in recent trading.
Today’s Range: $1.59-$1.88
52-Week Range: $1.31-$5.11
Three-Month Average Volume: 358,306
Shares of ZGNX are soaring today after the company submitted an investigational new drug application to the FDA for Relday, which is a combination of its DosePro needle-free, subcutaneous drug delivery system plus a proprietary, subcutaneous once-monthly formulation of risperidone for treating schizophrenia.
Traders should now look for long-biased trades in ZGNX if it can manage to take out its 50-day at $1.90, and then some major overhead resistance at $2.28 with high volume. Look for a sustained move or close above $1.90 to $2.28 with volume that’s near or above 358,306 shares. If we get that action soon, then ZGNZ has a great chance of re-testing its March high of $2.90.
IsoRay (ISR) develops, manufactures and sells isotope-based medical products and devices for the treatment of cancer and other malignant diseases. This stock is trading up 11% to $1.30 in recent trading.
Today’s Range: $1.17-$1.59
52-Week Range: $0.38-$1.49
Volume: 5.8 million
Three-Month Average Volume: 137,976
From a technical perspective, ISR is skyrocketing here with monster volume. This move is a continuation of recent upside momentum, since ISR has moved up from 61 cents to today’s high of $1.60 in just the last three trading sessions. Today’s large spike has also pushed ISR briefly into 52-week-high territory, and the stock has started to challenge some major past overhead resistance at $1.49.
Traders should now look for long-biased trades if ISR can manage to sustain a move or close above $1.49 to $1.60 with high-volume. On volume that’s near or above 137,976 shares, look for ISR to challenge its next major overhead resistance levels at $1.73 to $1.89 or possibly trade north of $2.
On the flipside, I would avoid any long trades in ISR if it moves back below today’s low of $1.17 with heavy volume.
LDK Solar (LDK) is a vertically integrated manufacturer of Photovoltaic (PV) products. This stock is trading up 4.9% to $1.90 in recent trading.
Today’s Range: $1.54-$1.91
52-Week Range: $1.76-$7.68
Volume: 2.6 million
Three-Month Average Volume: 1.6 million
From a technical perspective, LDK is moving notably higher here on above average volume. This move is coming off of extremely oversold territory, since its current relative strength index reading is 26.18. If large traders are done selling LDK, then this stock could potentially be preparing for a sharp bounce off these oversold conditions.
Traders should now look for long-biased trades if LDK can manage to close near its daily highs. At last check, LDK has hit an intraday high of $1.95 and volume is well above its three-month average action. If we get that action, then look for LDK to take out its next major overhead resistance level at $2.30 to $2.60 to confirm it wants to trend much higher. Some possible targets are $3.10 to its 50-day moving average of $3.24 if we get that large bounce soon.
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.