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7 Stocks Under $10 Moving 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-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.
No matter what the reason is, 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. Combine technical indicators with fundamental trends, discipline 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 moves to the upside today.
Vasco Data Security International
Vasco Data Security International (VDSI), through its operating subsidiaries, designs, develops, markets and supports hardware and software security systems that manage and secure access to information assets. This stock, rated C+ hold by TheStreet Ratings, is trading up 12.9% at $7.77 in recent trading.
Today’s Range: $7.25-$7.87
52-Week Range: $4.63-$14.72
Three-Month Average Volume: 271,954
Shares of VDSI are soaring today after the stock was upgraded to buy from hold at Wunderlich.
From a technical standpoint, VDSI is gapping up big today with strong volume, and the stock is now starting to challenge its 50-day moving average of $7.59. Traders should continue to look for long biased trades in VDSI if this stock manage to close above the 50-day and near its daily highs.
If we get that action, then I would look for VDSI to challenge $8.50 to $9.18 (its 200-day) in the near future, as long as the upside volume continues to track in strong.
Velti (VELT) is a global provider of mobile marketing and advertising solutions that enable brands, advertising agencies, mobile operators and media companies to implement campaigns by communicating with and engaging consumers through their mobile devices. This stock is trading up 12.8% at $7.10 in recent trading.
Today’s Range: $6.29-$7.41
52-Week Range: $6.04-$20.00
Volume: 1.2 million
Three-Month Average Volume: 495,059
From a technical standpoint, VELT is getting very close to triggering a big breakout trade today with the stock bumping up against its 50-day moving average of $7.28 on monster volume. At one point, the stock traded as high s $7.41, which also pushed it above some near-term overhead resistance levels at $7.06 to $7.13.
Traders should now watch for a sustained move and close above the 50-day and near the daily highs to trigger future upside. If we get that action today or in the near future, I would then add to any long positions once VELT takes out $7.73 with volume. A potential target on the upside if all of those levels are cleared is $9 to $9.50.
Arena Pharmaceuticals (ARNA) is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing oral drugs that target G protein-coupled receptors. This stock, which is rated D- sell by TheStreet Ratings, is trading up 10.9% at $1.78 in recent trading.
Today’s Range: $1.70-$1.86
52-Week Range: $1.21-$2.62
Volume: 4.9 million
Three-Month Average Volume: 1.85 million
Shares of ARNA are jumping higher today after the U.S. Food and Drug Administration (FDA) said it has accepted its resubmitted application for the diet-drug Lorcaserin. The FDA is expected to decide on whether to approve the drug by June 27.
From a technical standpoint, ARNA is soaring back above its 50-day moving average of $1.67 today on huge volume. Market players should continue to look for long biased trades as long as ARNA closes above the 50-day and near its daily high of $1.86.
If we get that action, look for ARNA to challenge $1.90 to $2 in the near future as long as the upside volume continues to track in strong. Any future move above $2.15 should then set this stock up to re-test its December high of $2.62.
Emulex (ELX) is a provider of a range of network convergence solutions that connect servers, storage, and networks within the data center. This stock, rated D+ sell by TheStreet Ratings, is trading up 14.8% at $8.49 in recent trading.
Today’s Range: $7.90-$8.62
52-Week Range: $5.86-$12.97
Volume: 2.6 million
Three-Month Average Volume: 910,057
Shares of ELX are surging today after the company said its second-quarter earnings would be above its earlier guidance as it recovered production after Thailand flooding and overcame supply issues.
From a technical standpoint, ELX are gapping up huge today on big volume back above its 50-day and 200-day moving averages. Market players should now watch for the next big breakout trade to trigger for ELX if this stock can take out $8.78 to $9.23 with volume.
A sustained high-volume move and close above those levels should set this stock up to re-test $10.40 to $10.75 in the near future. Look for volume that’s near or above 910,057 if those levels are taken out.
Lexicon Pharmaceuticals (LXRX) is a biopharmaceutical company focused on the discovery and development of breakthrough treatments for human disease. This stock, rated D sell by TheStreet Ratings, is trading up 9.4% to $1.27 in recent trading.
Today’s Range: $1.22-$1.30
52-Week Range: $0.81-$2.17
Three-Month Average Volume: 607,792
Shares of LXRX are spiking notably higher today after the company said the combination of LX4211 and the DPP-4 drug reduced blood sugar after meals in type 2 diabetes patients more than DPP-4 inhibitor did on a stand-alone basis.
From a technical standpoint, LXRX is quickly approaching a breakout trade if this stock can manage to sustain a high-volume move and close above some past overhead resistance levels at $1.32 to $1.44.
Look for a move and close above those levels on volume that’s near or above 607,792 shares. If we get that action, then look for LXRX to challenge its August high of $1.85.
Cogo Group (COGO) provides customized module design solutions for a range of applications and markets, serving as a gateway for the technology component suppliers to access electronics manufacturers in the People’s Republic of China. This stock, rated C- hold by TheStreet Ratings, is trading up 11.6% to $2.01 in recent trading.
Today’s Range: $1.85-$2.13
52-Week Range: $1.61-$9.55
Three-Month Average Volume: 184,114
From a technical standpoint, COGO has started to trigger a major breakout today now that this stock has taken out its 50-day moving average of $1.89 and some past overhead resistance at $1.94. Market players should now watch for a sustained high-volume move and close above those levels to signal that this stock wants to trend significantly higher.
Some potential upside targets are $2.25 to $2.50. Look for COGO to also close near its daily highs of $2.13, for more confirmation that the stock wants to go higher.
Rediff.com (REDF), along with its subsidiaries, is engaged in the business of providing online Internet-based services, focusing on India and the global Indian community. This stock, rated D+ sell by TheStreet Ratings, is trading up 10.7% to $8.51 in recent trading.
Today’s Range: $7.76-$8.72
52-Week Range: $4.89-$17.98
Three-Month Average Volume: 454,586
From a technical standpoint, REDF has started to trade back above its 50-day moving average of $8.26 today on decent volume. The stock has also started to break out here above some near-term overhead resistance at $7.90.
Traders should watch for this stock to close near its daily highs and above the 50-day to signal that the stock wants to trend higher. The next major breakout level will hit once REDF takes out its 200-day moving average of $9.03 with volume. Look for volume that’s near or above 454,586 if that level is taken out to the upside.
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.