3 stocks under $10 poised for big moves
When shares make a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits.
Stocks that are making large moves like these are favorites among short-term traders because they can jump into them 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 (see stockpickr.com here, here , and here).
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 today (stockpickr.com).
Diana Containerships (DCIX) owns and operates containerships. This stock closed up 2.9% to $3.82 in Thursday's trading session.
Thursday's Range: $3.69-$3.88
52-Week Range: $3.57-$7.13
Thursday's Volume: 363,000
Three-Month Average Volume: 349,152
From a technical perspective, DCIX trended higher here right above some near-term support at $3.61 with above-average volume. This stock recently formed a tipple bottom at $3.53, $3.57 and $3.61. Shares of DCIX have now started to rebound off those support levels and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if DCIX manages to clear its 50-day moving average at $3.95 and then once it takes out more resistance levels at $4 to $4.09 with high volume.
Traders should now look for long-biased trades in DCIX as long as it's trending above support at $3.61 to $3.53 and then once it sustains a move or close above those breakout levels with volume that hits near or above 349,152 shares. If that breakout triggers soon, then DCIX will set up to re-test or possibly take out its next major overhead resistance levels at $4.61 to $4.82.
Orion Marine Group
Orion Marine Group (ORN) provides a range of marine construction services on, over and under the water along the Gulf Coast, the Atlantic Seaboard and the Caribbean Basin. This stock closed up 1.7% to $9.89 in Thursday's trading session.
Thursday's Range: $9.67-$9.90
52-Week Range: $6.05-$13.52
Thursday's Volume: 209,000
Three-Month Average Volume: 154,841
From a technical perspective, ORN rose modestly higher here with above-average volume. This stock has been downtrending badly for the last month and change, with shares dropping sharply from its high of $13.52 to its recent low of $9.19. During that downtrend, shares of ORN have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of ORN could be ready to put an end to its downside volatility on the short-term and possible enter a new uptrend.
Traders should now look for long-biased trades in ORN as long as it's trending above $9.50, and then once it sustains a move or close above its 200-day moving average at $9.89 and above some near-term overhead resistance $10 with volume that hits near or above 154,841 shares. If we get that move soon, then ORN will set up to re-test or possibly take out its next major overhead resistance levels at $10.74 to its 50-day moving average at $10.92. Any high-volume move above $10.92 will then give ORN a chance to tag $12.
Clear Channel Outdoor
Clear Channel Outdoor (CCO) provides clients with advertising opportunities through billboards, street furniture displays, transit displays and other out-of-home advertising displays. This stock closed up 2.7% to $7.98 in Thursday's trading session.
Thursday's Range: $7.76-$8.00
52-Week Range: $5.29-$8.75
Thursday's Volume: 87,000
Three-Month Average Volume: 88,141
From a technical perspective, CCO trended notably higher here right above its 50-day moving average of $7.65 with decent upside volume. This stock has been uptrending strong for the last three months and change, with shares moving higher from its low of $7.19 to its recent high of $8.10. During that uptrend, shares of CCO have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CCO within range of triggering a big breakout trade. That trade will hit if CCO manages to take out Thursday's high of $8 and then once it clears some more near-term overhead resistance at $8.10 with high volume.
Traders should now look for long-biased trades in CCO as long as it's trending above its 50-day at $7.65 or its 200-day at $7.53 and then once it sustains a move or close above those breakout levels with volume that hits near or above 88,141 shares. If that breakout triggers soon, then CCO will set up to re-test or possibly take out its 52-week high at $8.75.
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