Sunday, January 4, 2015

4 Breakout Stocks Under $10 for Your Trading Radar

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

 

Must Read: Must-See Charts: 5 Big Stocks to Sidestep the Selloff

 

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.

 

Must Read: 5 Hated Earnings Stocks You Should Love

 

Himax Technologies

 

Himax Technologies (HIMX), a fabless semiconductor company, provides display imaging processing technologies to consumer electronics worldwide. This stock closed up 5.2% to $9.02 in Tuesday's trading session.

 

Tuesday's Range: $8.40-$9.05

52-Week Range: $5.70-$16.15

Tuesday's Volume: 5.88 million

Three-Month Average Volume: 4.83 million

 

From a technical perspective, HIMX ripped sharply higher here right above some near-term support at $8.26 with above-average volume. This jump to the upside on Tuesday is quickly pushing shares of HIMX within range of triggering a big breakout trade. That trade will hit if HIMX manages to take out Tuesday's intraday high of $9.05 to more near-term resistance at $9.57 and then above its 200-day moving average of $9.66 with high volume.

 

Traders should now look for long-biased trades in HIMX as long as it's trending above that key near-term support at $8.26 and then once it sustains a move or close above those breakout levels with volume that hits near or above 4.83 million shares. If that breakout hits soon, then HIMX will set up to re-test or possibly take out its next major overhead resistance levels at $11.18 to $11.69.

 

Must Read: 5 Short-Squeeze Stocks Set to Soar on Bullish Earnings

 

Marchex

 

Marchex (MCHX) operates as a mobile and call advertising technology company in the U.S. and Canada. This stock closed up 5.8% to $4.19 in Tuesday's trading session.

 

Tuesday's Range: $3.94-$4.35

52-Week Range: $3.92-$12.84

Tuesday's Volume: 1.35 million

Three-Month Average Volume: 501,856

 

From a technical perspective, MCHX ripped higher here right above its new 52-week low of $3.92 with heavy upside volume flows. This stock recently gapped down sharply from just over $7.50 to below $4 with heavy downside volume. Following that move, shares of MCHX have now started to rebound off that $3.92 low and it's quickly moving within range of triggering a major breakout trade. That trade will hit if MCHX manages to clear its gap-down-day high of $4.50 with high volume.

 

Traders should now look for long-biased trades in MCHX as long as it's trending above its new 52-week low of $3.92 and then once it sustains a move or close above $4.50 with volume that hits near or above 501,856 shares. If that breakout triggers soon, then MCHX will set up to re-fill some of its previous gap-down-day zone that started just above $7.50.

 

Must Read: 5 Stocks to Trade for Big Breakout Trades

 

Furmanite

 

Furmanite (FRM), together with its subsidiaries, provides specialized technical services. This stock closed up 2.2% to $7.78 in Tuesday's trading session.

 

Tuesday's Range: $7.52-$7.83

52-Week Range: $6.90-$12.70

Tuesday's Volume: 639,000

Three-Month Average Volume: 150,022

 

From a technical perspective, FRM trended higher here right above some near-term support at $7.21 with heavy upside volume flows. This stock has been downtrending badly for the last three months, with shares plunging lower from its high of $12 to its new 52-week low of $6.90. During that downtrend, shares of FRM have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of FRM have now started to rebound higher off that $6.90 low and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if FRM manages to take out Tuesday's intraday high of $7.83 to some more near-term overhead resistance at around $8 with high volume.

 

Traders should now look for long-biased trades in FRM as long as it's trending above some key near-term support at $7.21 or above its 52-week low of $6.90 and then once it sustains a move or close above those breakout levels with volume that hits near or above 150,022 shares. If that breakout hits soon, then FRM will set up to re-test or possibly take out its next major overhead resistance levels at $8.50 to its 50-day moving average of $9.16, or even $9.50.

 

Must Read: Warren Buffett's Top 10 Dividend Stocks

 

ADDvantage Technologies Group

 

ADDvantage Technologies Group (AEY) distributes and services a line of electronics and hardware products for the cable television industry. This stock closed up 5.2% to $2.42 in Tuesday's trading session.

 

Tuesday's Range: $2.29-$2.47

52-Week Range: $2.25-$3.55

Tuesday's Volume: 112,000

Three-Month Average Volume: 36,625

 

From a technical perspective, AEY ripped higher here right above some near-term support at $2.28 with above-average volume. This sharp spike to the upside on Tuesday also pushed shares of AEY back above its 50-day moving average of $2.41. Shares of AEY are now starting to trend within range of triggering a major breakout trade. That trade will hit if AEY manages to take out some key near-term overhead resistance levels at $2.50 to $2.55 with high volume.

 

Traders should now look for long-biased trades in AEY as long as it's trending above some key near-term support levels at $2.28 or above its 52-week low of $2.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 36,625 shares. If that breakout kicks off soon, then AEY will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $2.81 or at $3.10 to $3.13.

 

Must Read: 10 Stocks Billionaire John Paulson Loves in 2014

 

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:

 

>>How to Trade the Market's Most-Active Stocks

 

>>5 Stocks Spiking on Big Volume

 

>>5 Rocket Stocks Ready for Blastoff This Week

 

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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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