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6 Stocks Under $10 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 like a recent earnings release. Sometimes stocks making big % moves have been hit with an analyst upgrade or an analyst upgrade.
Regardless of what prompts it, when a stock makes a large percentage move, it is often the start of a new major trend. A trend that can lead to huge profits if you time the trade correctly and combine a number of technical indicators such as volume, price and momentum indicators such as RSI (relative strength index). Combine all of those technical indicators with fundamental trends, disciple and sound money management and you will be well on your way to investment success.
Let's take a closer look at a number of stocks under $10 that are making large-percentage moves to the upside today. These names warrant a close look since there’s clearly investor interest. Some of these names could potentially be just starting an even larger trend higher.
Sino-Global Shipping (SINO) is a shipping agency service provider in People’s Republic of China. This stock is trading up 24% at $2.70 in recent trading.
Today’s Range: $2.52-2.90
52-week Range: $1.20-$9.16
Three-Month Average Volume: 50,028
This stock is soaring higher today after the company announced it signed a memorandum of understanding with Wilson Sons Shipping Agency. Under the MOU, Sino-Global will recommend Wilson Sons to act as an agent to attend Sino-Global clients' vessels in Brazil and Wilson Sons will recommend Sino-Global to act as its agent in China for its clients' vessels loading in Brazil and discharging in China.
The next areas that traders should watch for that will trigger higher prices are a breakout over $2.96 and then $3.99. A high-volume move for $2.96 should set this stock up for re-test of $3.99 in the near future. Any high-volume move over $3.99 should also be considered bullish, and could signal a run at $6.
China XD Plastics
China XD Plastics (CXDC) is a manufacturer and developer of modified plastics. This stock is trading up 10.3% at $5.23 in recent trading.
Today’s Range: $5.07-$5.41
52-week Range: $3.10-$7.35
Three-Month Average Volume: 81,134
From a technical standpoint, this stock is soaring today on massive volume. Volume has already registered well above its three-month average action of 81,134 shares.
If this stock can hold its gains and close near the daily highs today, then traders should look to continue to play CXDC from the long side. Traders should make note that a big breakout will trigger for CXDC once the stock sustains a move and close above some past overhead resistance at $5.55 a share.
TiVo (TIVO) is a developer and provider of software, hardware, and services. Tivo generates revenues from three sources: consumer service, developing technology for television service providers and media services. This stock is trading up 5% at $10.006 in recent trading.
Today’s Range: $9.85-$10.26
52-week Range: $7.06-$12.65
Three-Month Average Volume: 2,984,410
This stock is trending higher today after the company reported a third-quarter net loss of 21 cents per share after the bell on Tuesday, vs. a net loss of 18 cents per share last year. Revenue soared to $64.77 million, from $50.85 million in the previous year.
From a technical standpoint, this stock has started to gap above its 200-day moving average of $9.74 today, but so far it has failed at its 50-day moving average of $10.22. The volume is tracking in strong, but I wouldn’t get interested in going long TIVO until the stock can sustain a move and close above $10.22 on high volume.
If that does happen today, then look to be a buyer and add to any long position once it then takes out $10.75 with volume. Look for volume that’s tracking in close to or above its three-month average volume of 2.98 million shares.
Primo Water (PRMW) is a provider of three- and five-gallon purified bottled water and water dispensers sold through retailers. This stock is trading up 5.7% to $2.96 in recent trading.
Today’s Range: $2.78-$3.07
52-week Range: $2.74-$16.45
Three-Month Average Volume: 584,574
This stock has started to bounce to the upside as bargain hunters swoop in with shares trading very close to its 52-week low of $2.74, which was hit yesterday.
From a technical standpoint, this stock is extremely oversold now since its relative strength index (RSI) is showing a reading of 28.80 Any reading below 30 is considered oversold, so we are reaching some extreme oversold levels with PRMW here.
If this stock can sustain its gains today and close near the highs, then it could be worth a shot for a rebound trade. If we get that action and you’re long the stock, then look to add on any future high-volume move above some overhead resistance at $3.45. Look for volume close to or above its three-month average action of 584,574 shares.
Yingli Green Energy
Yingli Green Energy (YGE) is a vertically integrated photovoltaic (PV) product manufacturer. Yingli designs, manufactures and sells PV modules, and designs, assembles, sells and installs PV systems. This stock is trading up 9.3% to $3.87 in recent trading.
Today’s Range: $3.46-$3.95
52-week Range: $2.75-$13.59
Three-Month Average Volume: 4,408,580
Despite posting a quarterly loss this morning, hurt by a steep slide in solar panel prices, shares of YGE are surging to the upside. The company also cut its full-year photovoltaic module shipment outlook, but the stock is ramping on what is probably a case of “all the bad news priced in” with the stock off by 60% in 2011.
From a technical standpoint, this stock has just started to trigger a breakout trade now that shares are soaring on heavy volume above its 50-day moving average of $3.64. If this stock can sustain a move and close above $3.64, then traders should look for much higher prices in the near future.
The next breakout for YGE will trigger on a high-volume move over $4 a share. Look for volume that’s tracking in close to or above its three-month average action of 4,408,508 on any move over $4.
Penson Worldwide (PNSN) is a provider of a range of critical securities and futures processing infrastructure products and services to the global financial services industry. This stock is trading up 5.5% at $1.16 in recent trading.
Today’s Range: $1.11-$1.18
52-week Range: $0.93-$7.41
Three-Month Average Volume: 189,505
From a technical standpoint, this stock is has been downtrending for months with shares consistently making lower highs and lower lows, which is very bearish price action. That said, the stock has just found some big buying support at around 92 cents to $1 a share.
This is a stock I wouldn’t get interested in until it can move back above its 50-day moving average of $1.37 on high volume. Traders should watch for a high-volume move over $1.37 that registers volume close to or above its three-month average action of 189,505 shares.
-- 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.