Saturday, February 28, 2015

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.

>>5 Stocks Insiders Love Right Now

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.

RealD

RealD (RLD) is a licensor of 3D technologies. This stock closed up 2.8% to $8.89 in Thursday's trading session.

Thursday's Range: $8.63-$9.00

52-Week Range: $6.19-$16.05

Thursday's Volume: 688,000

Three-Month Average Volume: 540,689

From a technical perspective, RLD spiked modestly higher here right above some near-term support at $8.45 with above-average volume. This move is quickly pushing shares of RLD within range of triggering a big breakout trade. That trade will hit if RLD manages to take out some key near-term overhead resistance at $9 with high volume.

Traders should now look for long-biased trades in RLD as long as it's trending above support at $8.45 or above $8 and then once it sustains a move or close above $9 with volume that hits near or above 540,689 shares. If that breakout triggers soon, then RLD will set up to re-test or possibly take out its next major overhead resistance levels at $11 to its 200-day moving average at $11.25, or even $12.

Empresa Distribuidora y Comercializadora Norte

Empresa Distribuidora y Comercializadora Norte (EDN) distributes and sells electricity in Buenos Aires. This stock closed up 8.5% to $6.38 in Thursday's trading session.

Thursday's Range: $5.93-$6.41

52-Week Range: $1.65-$7.03

Thursday's Volume: 109,000

Three-Month Average Volume: 82,031

From a technical perspective, EDN spiked sharply higher here and broke out above some near-term overhead resistance at $6.20 with above-average volume. This stock has been uptrending for the last month, with shares moving higher from its low of $4.72 to its intraday high of $6.41. During that move, shares of EDN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of EDN within range of triggering a big breakout trade. That trade will hit if EDN manages to take out some near-term overhead resistance levels at $6.43 to its 52-week high at $7.03 with high volume.

Traders should now look for long-biased trades in EDN as long as it's trending above Thursday's low of $5.93 or above more support at $5.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 82,031 shares. If that breakout hits soon, then KEM will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $8 to $8.86.

Cenveo

Cenveo (CVO) provides an array of print and related solutions in the areas of envelops, custom labels, specialty packaging, and business documents, among others. This stock closed up 3.9% to $3.44 in Thursday's trading session.

Thursday's Range: $3.31-$3.45

52-Week Range: $1.85-$3.53

Thursday's Volume: 603,000

Three-Month Average Volume: 597,514

From a technical perspective, CVO spiked higher here right off some near-term support at $3.27 with above-average volume. This stock has been uptrending strong for the last three months and change, with shares soaring from its low of $2.11 to its recent high of $3.53. During that uptrend, shares of CVO have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CVO within range of triggering a near-term breakout trade. That trade will hit if CVO manages to take out Thursday's high of $3.45 to its 52-week high at $3.53 with high volume.

Traders should now look for long-biased trades in CVO as long as it's trending above some near-term support at $3.27 or above its 50-day at $3.05 and then once it sustains a move or close above those breakout levels with volume that hits near or above 597,514 shares. If that breakout hits soon, then CVO will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $4.50 to $5.

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Vitacost.com

Vitacost.com (VITC) is an online retailer and direct marketer of health and wellness products including dietary supplements, cosmetics, organic body and personal care products, Pet products, sports nutrition as well as health foods. This stock closed up 7.8% to $5.64 in Thursday's trading session.

Thursday's Range: $5.23-$5.71

52-Week Range: $5.11-$9.40

Thursday's Volume: 214,000

Three-Month Average Volume: 124,554

From a technical perspective, VITC ripped sharply higher here right above its 52-week low of $5.11 with above-average volume. This stock has been downtrending badly for the last two months and change, with shares dropping sharply lower from its high of $8.99 to its low of $5.11. During that downtrend, shares of VITC have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of VITC might be ready to see an end to its recent downside volatility, since this stock is very oversold and starting to catch a bid. The current relative strength index reading for VITC is 30.60, which is an extreme oversold condition.

Traders should now look for long-biased trades in VITC as long as it's trending above its 52-week low of $5.11 and then once it sustains a move or close above Thursday's high of $5.71 to more near-term overhead resistance at $6 with volume that hits near or above 124,554 shares. If we get that move soon, then VITC will set up to re-test or possibly take out its next major overhead resistance levels at $6.50 to $7, or even $7.50.

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

-- Written by Roberto Pedone in Delafield, Wis.


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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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