DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.
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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.
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With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.
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Vimicro International
Vimicro International (VIMC), together with its subsidiaries, engages in the design, development and marketing of mixed-signal semiconductor products and system-level solutions for the consumer electronics, communications and surveillance markets in Mainland China and Hong Kong. This stock closed up 2.4% to $2.88 in Tuesday's trading session.
Tuesday's Range: $2.81-$2.90
52-Week Range: $1.10-$3.90
Tuesday's Volume: 108,000
Three-Month Average Volume: 90,666
From a technical perspective, VIMC spiked higher here right off some near-term support at $2.80 with above-average volume. This stock recently formed a bottoming chart pattern right above $2.60. Shares of VIMC are now trending higher off that bottom and it's breaking out above some near-term overhead resistance at $2.94. Market players should now look for a continuation move higher in the short-term if VIMC manage to take out Tuesday's high of $3.02 to some more resistance at $3.06 with strong volume.
Traders should now look for long-biased trades in VIMC as long as it's trending above $2.80 or above $2.70 and then once it sustains a move or close above $3.02 to $3.06 with volume that hits near or above 90,666 shares. If we get that move soon, then VIMC will set up to re-test or possibly take out its next major overhead resistance levels at $3.40 to $3.60. Any high-volume move above those levels will then put its 52-week high at $3.90 into range for shares of VIMC.
Abraxas Petroleum
Abraxas Petroleum (AXAS), an independent energy company, engages in the acquisition, exploitation, development and production of oil and gas in the U.S. and Canada. This stock closed up 5.6% to $3.35 in Tuesday's trading session.
Tuesday's Range: $3.18-$3.35
52-Week Range: $1.93-$3.96
Tuesday's Volume: 1.44 million
Three-Month Average Volume: 1.19 million
From a technical perspective, AXAS ripped sharply higher here back above its 50-day moving average of $3.27 with above-average volume. This move also pushed shares of AXAS into breakout territory, after the stock took out some near-term overhead resistance levels at $3.31 to $3.32. Market players should now look for a continuation move higher in the short-term if AXAS manages to take out Tuesday's high of $3.35 with strong volume.
Traders should now look for long-biased trades in AXAS as long as it's trending above Tuesday's low of $3.18 or above more support at $3.10 and then once it sustains a move or close above $3.35 with volume that hits near or above 1.19 million shares. If we get that move soon, then AXAS will set up to re-test or possibly take out its next major overhead resistance levels $3.57 to its 52-week high at $3.96. Any high-volume move above those levels will then give AXAS a chance to tag its next major overhead resistance level at $4.39.
ERBA Diagnostics
ERBA Diagnostics (ERB), through its subsidiaries, develops, manufactures and markets diagnostic test kits or assays, and automated systems that are used to aid in the detection of disease markers in the areas of autoimmune, infectious diseases, clinical chemistry, hematology, and diabetes testing. This stock closed up 10% to $3.08 in Tuesday's trading session.
Tuesday's Range: $2.82-$3.18
52-Week Range: $0.62-$4.13
Tuesday's Volume: 62,000
Three-Month Average Volume: 214,318
From a technical perspective, ERB bounced sharply higher here right off its 50-day moving average of $2.76 with lighter-than-average volume. This move is quickly pushing shares of ERB within range of triggering a near-term breakout trade. That trade will hit if ERB manages to take out some near-term overhead resistance levels at $3.18 to $3.39 with high volume.
Traders should now look for long-biased trades in ERB as long as it's trending above its 50-day at $2.76 and then once it sustains a move or close above those breakout levels with volume that hits near or above 214,318 shares. If that breakout hits soon, then ERB will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $4.13. Any high-volume move above $4.13 will then give ERB a chance to tag $4.50 to $5.
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.
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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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