Saturday, May 24, 2014

4 Stocks Under $10 Making Big Moves

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

 

 

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 $10 that are making large moves to the upside.

 

American Apparel

 

American Apparel (APP), designs, manufactures, distributes, retails and sells branded fashion basic apparel products, and clothing and accessories for women, men, children, and babies. This stock closed up 6.3% to 65 cents per share in Thursday's trading session.

 

Thursday's Range: $0.57-$0.66

52-Week Range: $0.46-$2.17

Thursday's Volume: 2.12 million

Three-Month Average Volume: 2.65 million

 

From a technical perspective, APP bounced sharply higher here right off its 50-day moving average of 61 cents per share with decent upside volume. This stock recently pulled back from 75 cents per share to Thursday's low of 57 cents per share with light downside volume. Market players should now look for a continuation move higher in the short-term if APP manages to take out Thursday's intraday high of 66 cents per share with high volume.

 

Traders should now look for long-biased trades in APP as long as it's trending above its 50-day at 61 cents per share and then once it sustains a move or close above 66 cents per share with volume that hits near or above 2.65 million shares. If that move kicks off soon, then APP will set up to re-test or possibly take out its next major overhead resistance levels at 75 to 82 cents per share.

 

Oi

 

Oi (OIBR) provides integrated telecommunication services for residential customers, companies and governmental agencies in Brazil. This stock closed up 2.5% to 85 cents per share in Thursday's trading session.

 

Thursday's Range: $0.82-$0.86

52-Week Range: $0.76-$2.34

Thursday's Volume: 22.83 million

Three-Month Average Volume: 14.72 million

 

From a technical perspective, OIBR jumped modestly higher here right above some near-term support at 80 cents per share with heavy upside volume. This stock has been downtrending badly for the last five months, with shares sliding lower from its high of $1.97 to its recent 52-week low of 76 cents per share. During that downtrend, shares of OBIR have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of OIBR now look ready to rebound and potentially trigger a near-term breakout trade. That trade will hit if OIBR manages to take out Thursday's intraday high of 86 cents to more near-term overhead resistance at 90 cents per share with high volume.

 

Traders should now look for long-biased trades in OIBR as long as it's trending above some key near-term support levels at 80 cents to 76 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 14.72 million shares. If that breakout triggers soon, then OIBR will set up to re-test or possibly take out its next major overhead resistance levels at $1.02 to $1.08 a share. Any high-volume move above those levels will then give OIBR a chance to tag its 50-day moving average of $1.18 to more resistance at $1.27.

 

Endocyte

 

Endocyte (ECYT), a biopharmaceutical company, develops targeted therapies for the treatment of cancer and inflammatory diseases in the U.S. This stock closed up 2.2% to $6.45 a share in Thursday's trading session.

 

Thursday's Range: $6.14-$6.48

52-Week Range: $6.01-$33.70

Thursday's Volume: 893,000

Three-Month Average Volume: 1.91 million

 

From a technical perspective, ECYT jumped higher here right above its recent 52-week low of $6.01 with lighter-than-average volume. This move higher on Thursday is starting to push shares of ECYT within range of triggering a major breakout trade. That trade will hit if ECYT manages to clear some near-term overhead resistance levels at $6.82 to $7.30 with high volume.

 

Traders should now look for long-biased trades in ECYT as long as it's trending above its 52-week low of $6.01 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.91 million shares. If that breakout hits soon, then ECYT will set up to re-fill some of its previous gap-down-day zone from earlier this month that started above $17.50.

 

Ciber

 

Ciber (CBR) operates as an information technology company. This stock closed up 6.8 % to $4.50 a share in Thursday's trading session.

 

Thursday's Range: $4.21-$4.54

52-Week Range: $3.08-$4.91

Thursday's Volume: 787,000

Three-Month Average Volume: 221,444

 

From a technical perspective, CBR bounced sharply higher here right above some near-term support at $4.13 and back above its 50-day moving average of $4.41 with heavy upside volume flows. This bounce higher on Thursday is quickly pushing shares of CBR within range of triggering a major breakout trade. That trade will hit if CBR manages to take out some key near-term overhead resistance levels at $4.64 to $4.73 and then once it takes out its 52-week high of $4.91 with high volume.

 

Traders should now look for long-biased trades in CBR as long as it's trending above some key near-term support levels at $4.13 or at $4.10 and then once it sustains a move or close above those breakout levels with volume that hits near or above 221,444 shares. If that breakout gets underway soon, then CBR will set up to enter new 52-week-high territory above $4.91, which is bullish technical price action. Some possible upside targets off that breakout are $5.50 to $6.

 

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

 

-- Written by Roberto Pedone in Delafield, Wis.

 

RELATED LINKS:

 

>>5 Dividend Stocks Ready to Pay You More

 

>>A Horrible Chart to Trade for Wonderful Gains

 

>>5 Stocks Under $10 Set to Soar

 

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At the time of publication, author had no positions in stocks mentioned.

 

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com.

 

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


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