DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.
>>5 Stocks Ready to Break Out
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 today.
Cimatron
Cimatron (CIMT) designs, develops, manufactures, markets and supports a family of modular, high-performance, CAD/CAM software products. This stock closed up 6.9% to $7.90 in Tuesday's trading session.
Tuesday's Range: $7.20-$7.97
52-Week Range: $4.02-$12.88
Thursday's Volume: 315,000
Three-Month Average Volume: 236,391
From a technical perspective, CIMT spiked sharply higher here with above-average volume. This move briefly pushed shares of CIMT into breakout territory, since this stock flirted with some near-term overhead resistance at $7.91. Shares of CIMT tag an intraday high of $7.97 before closing just below that breakout level at $7.90. Market players should now look for a continuation move higher in the short-term if CIMT can manage to take Tuesday's high of $7.97 with strong upside volume flows.
Traders should now look for long-biased trades in CIMT as long as it's trending above $7.30 or above Tuesday's low of $7.20 and then once it sustains a move or close above $7.97 with volume that hits near or above 236,391 shares. If we get that move soon, then CIMT will set up to re-test or possibly take out its next major overhead resistance levels at $8.50 to $8.70, or even $8.95. Any high-volume move above those levels will then give CIMT a chance to tag $10.
DragonWave
DragonWave (DRWI) is a provider of high-capacity packet microwave solutions that drive next-generation IP networks. This stock closed up 6.1% to $1.39 in Tuesday's trading session.
Tuesday's Range: $1.33-$1.48
52-Week Range: $1.08-$3.74
Thursday's Volume: 1.56 million
Three-Month Average Volume: 707,767
From a technical perspective, DRWI spiked sharply higher here back above its 50-day moving average of $1.37 with strong upside volume. This stock has been uptrending for the last month and change, with shares moving higher from its low of $1.08 to its recent high of $1.53. During that move, shares of DRWI have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of DRWI within range of triggering a big breakout trade. That trade will hit if DRWI manages to take out Tuesday's high of $1.48 to some more near-term overhead resistance at $1.53 with high volume.
Traders should now look for long-biased trades in DRWI as long as it's trending above Tuesday's low of $1.33 or above more near-term support at $1.27, and then once it sustains a move or close above those breakout levels with volume that hits near or above 707,767 shares. If that breakout triggers soon, then DRWI will set up to re-test or possibly take out its next major overhead resistance levels at $1.86 to $2.18.
On Track Innovations
On Track Innovations (OTIV) designs, develops, and markets contactless microprocessor-based smart card solutions to customers in Africa, Europe, the Far East, the Americas and Israel. This stock closed up 6% to $3.15 in Tuesday's trading session.
Tuesday's Range: $3.00-$3.37
52-Week Range: $0.80-$3.70
Thursday's Volume: 1.76 million
Three-Month Average Volume: 491,922
From a technical perspective, OTIV spiked sharply higher here right above some near-term support at $2.93 with strong upside volume. This move briefly pushed shares of OTIV into breakout territory, since the stock flirted with some near-term overhead resistance at $3.31. Shares of OTIV tag an intraday high on Tuesday of $3.37 before closing just below that breakout level at $3.15. Market players should now look for a continuation move higher in the short-term if shares of OTIV manage to take out Tuesday's high of $3.37 with strong volume.
Traders should now look for long-biased trades in OTIV as long as it's trending above Tuesday's low of $3 or above more near-term support at $2.93 and then once it sustains a move or close above $3.37 with volume that hits near or above 491,922 shares. If we get that move soon, then OTIV will set up to re-test or possibly take out its 52-week high at $3.70. Any high-volume move above that level will then give OTIV a chance to trend north of $4.
Yingli Green Energy
Yingli Green Energy (YGE) engages in the design, development, marketing, manufacture, installation and sale of photovoltaic products. This stock closed up 11.8% to $4.83 in Tuesday's trading session.
Tuesday's Range: $4.30-$4.85
52-Week Range: $1.62-$8.77
Tuesday's Volume: 7.10 million
Three-Month Average Volume: 7.80 million
From a technical perspective, YGE spiked sharply higher here right above its 200-day moving average of $4.19 with decent upside volume. This stock has been downtrending badly over the last two months and change, with shares falling from its high of $8.77 to its recent low of $4.17. During that downtrend, shares of YGE have been consistently making lower highs and lower lows, which is bearish technical price action. That said, the downside volatility for YGE could be over in the short-term and the stock could be ready to enter a new uptrend.
Traders should now look for long-biased trades in YGE as long as it's trending above its 200-day at $4.19 and then once it sustains a move or close above Tuesday's high of $4.85 with volume that hits near or above 7.80 million shares. If we get that move soon, then YGE will set up to re-test or possibly take out its next major overhead resistance levels at $5.48 to its 50-day moving average at $6.18. Any high-volume move above $6.18 will then give YGE a chance to tag its next major overhead resistance levels at $6.82 to $7.17.
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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