Thursday, August 21, 2014

5 Active Under-$10 Stocks to Buy Now

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

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.

Read More: Warren Buffett's Top 10 Dividend Stocks

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.

Read More: 5 Stocks With Big Insider Buying

ITT Educational Services

ITT Educational Services (ESI) provides postsecondary degree programs in the U.S. This stock closed up 4.4% to $8.92 in Tuesday's trading session.

Tuesday's Range: $8.54-$8.94
52-Week Range: $7.46-$45.80
Tuesday's Volume: 584,000
Three-Month Average Volume: 933,487

From a technical perspective, ESI ripped higher here right above some near-term support at $8.25 with lighter-than-average volume. This strong push to the upside on Tuesday is quickly pushing shares of ESI within range of triggering a big breakout trade. That trade will hit if ESI manages to take out Tuesday's intraday high of $8.94 to some more near-term overhead resistance at $9.08 with high volume.

Traders should now look for long-biased trades in ESI as long as it's trending above Tuesday's intraday low of $8.54 or above more near-term support at $8.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 933,487 shares. If that breakout hits soon, then ESI will set up to re-test or possibly take out its next major overhead resistance levels $12.50 to $13.
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Ceragon Networks

Ceragon Networks (CRNT) provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice and data services worldwide. This stock closed up 2.4% to $2.11 in Tuesday's trading session.

Tuesday's Range: $2.05-$2.12
52-Week Range: $2.00-$4.35
Tuesday's Volume: 534,000
Three-Month Average Volume: 321,547

From a technical perspective, CRNT trended notably higher here right above some key near-term support at $2 with above-average volume. This stock recently formed a major bottoming chart pattern, since the stock find buying interest each time it pulled back to around $2 a share. Since that bottom, shares of CRNT have started to move higher and the stock is now quickly pushing within range of triggering a near-term breakout trade. That trade will hit if CRNT manages to take out some key near-term overhead resistance levels at $2.14 to around $2.20 with high volume.

Traders should now look for long-biased trades in CRNT as long as it's trending above support at $2 and then once it sustains a move or close above those breakout levels with volume that hits near or above 321,547 shares. If that breakout begins soon, then CRNT will set up to re-test or possibly take out its next major overhead resistance level near its gap-down-day high from July at around $2.30. Any high-volume move above $2.30 will then give CRNT a chance to tag $2.50 to $2.60, or even $2.70 to $2.80.

Pixelworks

Pixelworks (PXLW) designs, develops, and markets video and pixel processing semiconductors, software, and custom ASIC solutions for digital video applications. This stock closed up 8.5% to $6.60 in Tuesday's trading session.

Tuesday's Range: $6.11-$6.63
52-Week Range: $3.63-$9.83
Tuesday's Volume: 1.82 million
Three-Month Average Volume: 1.16 million

From a technical perspective, PXLW ripped sharply higher here right above some near-term support at $6 with above-average volume. This strong rip to the upside on Tuesday is quickly pushing shares of PXLW within range of triggering a near-term breakout trade. That trade will hit if PXLW manages to take out Tuesday's intraday high of $6.63 and then once it clears its recent gap-down-day high right below $7 with high volume.

Traders should now look for long-biased trades in PXLW as long as it's trending above Tuesday's intraday low of $6.11 or above $6 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.16 million shares. If that breakout hits soon, then PXLW will set up to re-fill some of its previous gap-down-day zone from July that started just above $8.

Zhone Technologies

Zhone Technologies (ZHNE), designs, develops, manufactures, and sells communications network equipment for telecommunications, wireless, and cable operators worldwide. This stock closed up 2.3% to $3.55 in Tuesday's trading session.

Tuesday's Range: $3.46-$3.58
52-Week Range: $2.08-$6.62
Tuesday's Volume: 198,000
Three-Month Average Volume: 357,117

From a technical perspective, ZHNE trended notably higher here right above its 50-day moving average of $3.24 with lighter-than-average volume. This stock has been uptrending a bit over the last few weeks, with shares moving higher from its low of $3.03 to its intraday high of $3.58. During that move, shares of ZHNE have been consistently making higher lows and higher highs, which is bullish technical price action. That move is now starting to push shares of ZHNE within range of triggering a near-term breakout trade. That trade will hit if ZHNE manages to take out Tuesday's intraday high of $3.58 and then once it clears more resistance at $3.83 to its 200-day moving average of $3.92 with high volume.

Traders should now look for long-biased trades in ZHNE as long as it's trending above its 50-day at $3.24 and then once it sustains a move or close above those breakout levels with volume that hits near or above 357,117 shares. If that breakout kicks off soon, then ZHNE will set up to re-test or possibly take out its next major overhead resistance levels at $4.24 to $4.45, or even $4.80 to $5.

Delcath Systems

Delcath Systems (DCTH) operates as a specialty pharmaceutical and medical device company focusing on the field of oncology in the U.S. and internationally. This stock closed up 1.9% to $2.10 in Tuesday's trading session.

Tuesday's Range: $2.04-$2.12
52-Week Range: $1.90-$10.56
Tuesday's Volume: 57,000
Three-Month Average Volume: 94,992

From a technical perspective, DCTH trended modestly higher here right above some near-term support at $2 with lighter-than-average volume. This stock has been downtrending badly for the last six months, with shares moving lower from its high of $6.72 to its recent low of $1.90. During that downtrend, shares of DCTH have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of DCTH have now started to bounce off that $1.90 low and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if DCTH manages to take out some key near-term overhead resistance at $2.14 with high volume.

Traders should now look for long-biased trades in DCTH as long as it's trending above $2 or above some more near-term support at $1.90 and then once it sustains a move or close above $2.14 with volume that hits near or above 94,992 shares. If that breakout materializes soon, then DCTH will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $2.38 to $2.44, or even $3.

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:

>>5 Stocks Spiking on Big Volume

 

>>Sell These 5 Toxic Stocks Before It's Too Late

 

>>4 Stocks Under $10 to Trade Now

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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.