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6 Stocks Under $10 Soaring Higher - views
Stocks that are making large-percentage 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 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.
No matter what the reason is, when a stock makes a large % move it is often times just 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 like volume, price, and momentum indicators such as RSI. 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.
With that in mind, let's take a closer look at several 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.
SemiLEDs (LEDS) develops, manufactures and sells light emitting diode (LED) chips and LED components. This stock is trading up 22.3% at $3.94 in recent trading.
Today’s Range: $3.33-$3.93
52-Week Range: $2.60-$29.66
Three-Month Average Volume: 91,213
Traders should now watch for the next breakout to trigger once LEDS takes out $4 on a closing basis with volume. Look for volume that’s tracking in near or above 91,213 on a move over $4 to signal that this stock wants to re-test its next significant overhead resistance level at $4.51.
Consolidated Water (CWCO) develops and operates seawater desalination plants and water distribution systems. This stock is trading up 7.8% at $8.79 in recent trading.
Today’s Range: $8.31-$8.90
52-Week Range: $7.25-$11.68
Three-Month Average Volume: 84,825
From a technical standpoint, CWCO has started to spike back above its 50-day moving average of $8.65 today on decent volume.
Traders should watch for the next long trade to trigger once CWCO takes out its 200-day moving average of $9.01 with volume. Look for a move over $9.01 on volume that’s near or above 84,825 shares. If we see that action, then this stock should set up to re-test $9.32 or possibly $9.88 in the near-term.
Endeavour International (END) is an independent oil and gas company engaged in the exploration, development and acquisition of energy reserves in the U.S. and U.K. This stock is trading up 13% at $8.96 in recent trading.
Today’s Range: $8.49-$9.34
52-Week Range: $5.80-$16.43
Three-Month Average Volume: 438,857
Shares of END are ripping higher today after Rodman & Renshaw raised its recommendation to outperform from market perform with a $12.50 price target following its U.K. North Sea acquisition.
From a technical standpoint, END triggered a big breakout today once the stock cleared some past overhead resistance at $7.37 to $7.91 on monster volume.
Market players should now watch for the next breakout trade to trigger once END takes out $10.23 to $10.68 (its 200-day moving average) with volume. Look for volume on a move and close above those levels that’s near or above 438,857 shares.
Bacterin International (BONE) develops, manufactures and markets biologics products to domestic and international markets through Bacterin's biologics division. This stock is trading up 6.8% at $2.50 in recent trading.
Today’s Range: $2.36-$2.53
52-Week Range: $1.61-$9.00
Three-Month Average Volume: 137,073
From a technical standpoint, BONE is bumping up against its 50-day moving average of $2.53 today with heavy volume. Market players should now watch BONE for a breakout play if the stock can clear $2.53 to $2.55 on high volume.
Look for a sustained move and close above those levels with volume that’s near or above 137,073 shares. If we get that action, then watch for BONE to make a huge spike back towards its next significant overhead resistance level at $3.40 or possibly even $3.93 in the near future.
Hyperdynamics (HDY) is an oil and gas exploration company with prospects in offshore Republic of Guinea in Northwest Africa. This stock is trading up 3.1% to $2.29 in recent trading.
Today’s Range: $2.26-$2.48
52-Week Range: $2.01-$7.78
Volume: 4.1 million
Three-Month Average Volume: 3 million
Shares of HDY are moving nicely to the upside today after the company said it has resumed drilling operations on the Sabu-1 exploration well in its concession offshore the Republic of Guinea in West Africa.
From a technical standpoint, HDY has started to challenge a break out of its consolidation range from $2.01 to $2.38. This stock has been trading within that range for the past few weeks.
Any high-volume move that takes HDY above $2.38 on a closing basis should set this stock up to re-test $2.75 to $3.25 in the near-term. Volume today is tracking in very strong, so look for a close over $2.38 to signal a much larger spike higher for HDY in the near future.
Daqo New Energy
Daqo New Energy (DQ) manufactures and sells polysilicon to photovoltaic product manufacturers, who further process its polysilicon into ingots, wafers, cells and modules for solar power solutions. This stock is trading up 6.9% to $1.69 in recent trading.
Today’s Range: $1.57-$1.70
52-Week Range: $1.41-$14.97
Three-Month Average Volume: 228,916
From a technical standpoint, DQ is nearing a big breakout if the stock can manage to sustain a move and close above some near-term overhead resistance at $1.80 on heavy volume. A high-volume move above that level and then $1.99 should set this stock up to re-test $2.35 to $2.43 (50-day moving average.
Market players should look for volume on any close above $1.80 to $1.99 that’s near or above 228,916 shares.
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.