Friday, May 2, 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.

>>5 Stocks Under $10 Set to Soar

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.

>>Must-See Charts: 5 Big Trades for May

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

Mines Management

Mines Management (MGN), together with its subsidiaries, acquires, explores and develops various mineral properties in North and South America. This stock closed up 7% to $1.36 in Thursday's trading session.

Thursday's Range: $1.25-$1.37

52-Week Range: $0.48-$1.80

Thursday's Volume: 107,000

Three-Month Average Volume: 211,374

From a technical perspective, MGN ripped higher here back above its 50-day moving average of $1.28 with lighter-than-average volume. This move pushed shares of MGN into breakout territory, since this stock took out some near-term overhead resistance at $1.35. Market player should now look for a continuation move higher in the short-term if MGN manages to take out Thursday's high of $1.37 with high volume.

Traders should now look for long-biased trades in MGN as long as it's trending above Thursday's low of $1.25 or above $1.20 and then once it sustains a move or close above $1.37 with volume that hits near or above 211,374 shares. If we get that move soon, then MGN will set up to re-test or possibly take out its next major overhead resistance levels at $1.50 to its 52-week high at $1.80.

Republic Airways

Republic Airways (RJET), through its subsidiaries, provides scheduled passenger services. This stock closed up 9.9% to $9.14 a share in Thursday's trading session.

Thursday's Range: $8.51-$9.29

52-Week Range: $7.82-$13.92

Thursday's Volume: 1.98 million

Three-Month Average Volume: 629,708

From a technical perspective, RJET exploded higher here and gapped up back above its 50-day moving average of $8.93 with monster upside volume. This move also pushed shares of RJET into breakout territory, since this stock took out some near-term overhead resistance levels at $8.50 to $8.58. Market players should now look for a continuation move higher in the short-term if RJET manages to take out Thursday's high of $9.30 with high volume.

Traders should now look for long-biased trades in RJET as long as it's trending above Thursday's low of $8.51 and then once it sustains a move or close above $9.30 with volume that hits near or above 629,708 shares. If that move gets underway soon, then RJET will set up to re-test or possibly take out its next major overhead resistance levels at $10 to its 200-day moving average of $10.68.

Office Depot

Office Depot (ODP), together with its subsidiaries, supplies office products and services. This stock closed up 3.6% to $4.24 a share in Thursday's trading session.

Thursday's Range: $4.07-$4.25

52-Week Range: $3.75-$5.85

Thursday's Volume: 7.89 million

Three-Month Average Volume: 8.89 million

From a technical perspective, ODP ripped higher here right above some near-term support at $3.97 with decent upside volume. This move is quickly pushing shares of ODP within range of triggering a near-term breakout trade. That trade will hit if ODP manages to take out some key near-term overhead resistance levels at $4.28 to its 50-day moving average of $4.41 with high volume.

Traders should now look for long-biased trades in ODP as long as it's trending above some near-term support levels at $3.97 or at $3.84 and then once it sustains a move or close above those breakout levels with volume that hits near or above 8.89 million shares. If that breakout hits soon, then ODP will set up to re-test or possibly take out its next major overhead resistance levels at $4.69 to its 200-day moving average of $4.77. Any high-volume move above those levels will then give ODP a chance to tag its next major overhead resistance levels at $5.13 to $5.41.

RiceBran Technologies

RiceBran Technologies (RIBT), a human food ingredient and animal nutrition company, is engaged in the processing and marketing of healthy, natural and nutrient-dense products derived from rice bran. This stock closed up 6.1% to $4.49 a share in Thursday's trading session.

Thursday's Range: $4.23-$4.49

52-Week Range: $3.56-$16.00

Thursday's Volume: 71,000

Three-Month Average Volume: 23,956

From a technical perspective, RIBT ripped sharply higher right above some near-term support at $4 with above-average volume. This stock has been uptrending modestly for the last month, with shares moving higher from its low of $3.56 to its recent high of $4.93. During that uptrend, shares of RIBT have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of RIBT within range of triggering a near-term breakout trade. That trade will hit if RIBT manages to take out its 50-day moving average of $4.53 to some more near-term overhead resistance at $4.93 with high volume.

Traders should now look for long-biased trades in RIBT as long as it's trending above support at $4 and then once it sustains a move or close above those breakout levels with volume that hits near or above 23,956 shares. If that breakout triggers soon, then RIBT will set up to re-test or possibly take out its next major overhead resistance levels at $5.30 to $5.60. Any high-volume move above those levels will then give RIBT a chance to tag $6 to $7.

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:



>>3 Stocks Rising on Unusual Volume



>>4 Stupid Reasons to Sell Apple



>>5 Stocks With Big Insider Buying

Follow Stockpickr on Twitter and become a fan on Facebook.

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.


No comments:

Post a Comment