Monday, May 12, 2014

4 Stocks Under $10 Moving Higher

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 today.

IntelliPharmaCeutics International

IntelliPharmaCeutics International's (IPCI) business activities include research, development and commercialization of controlled-release and targeted pharmaceutical products. This stock closed up 9.3% to $2.34 in Thursday's trading session.

Thursday's Range: $2.25-$2.39

52-Week Range: $1.50-$3.72

Thursday's Volume: 1.49 million

Three-Month Average Volume: 107,047

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From a technical perspective, IPCI gapped up sharply higher here and broke out above some near-term overhead resistance at $2.14 with monster upside volume. This move today saw IPCI fill a previous gap from last July that started near $2.40. Shares of IPCI closed near its intraday high on Thursday that was $2.39, which is bullish price action.

Traders should now look for long-biased trades in IPCI as long as it's trending above its 200-day at $2.05 and then once it sustains a move or close above Thursday's high of $2.39 with volume that hits near or above 107,047 shares. If we get that move soon, then IPCI will set up to re-test or possibly take out its next major overhead resistance levels at $2.80 to just over $3. Any high-volume move above those levels will then give IPCI a chance to tag its 52-week high at $3.72.

Cyan

Cyan (CYNI) provides carrier-grade networking solutions that transform disparate and inefficient legacy networks into open, high-performance networks. It also offers high-capacity, multi-layer switching and transport platforms, known as Cyan Z-Series. This stock closed up 8.5% to $8.74 in Thursday's trading session.

Thursday's Range: $8.10-$8.84

52-Week Range: $7.85-$15.05

Thursday's Volume: 195,000

Three-Month Average Volume: 131,938

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From a technical perspective, CYNI soared higher here right above its recent low of $7.85 with above-average volume. This stock has been downtrending badly for the last four months, with shares pushing lower from its high of $15.05 to its recent low of $7.85. During that move, shares of CYNI have been making mostly lower highs and lower lows, which is bearish technical price action. That said, it looks like CYNI is ready to stop its downside volatility and push higher from oversold levels.

Traders should now look for long-biased trades in CYNI as long as it's trending above $8 or above that recent low of $7.85 and then once it sustains a move or close above some near-term overhead resistance at $9.30 with volume that hits near or above 131,938 shares. If we get that move soon, then CYNI will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $10.21 to $11.40. Any high-volume move above $11.40 will then put $12 to $12.50 into range for shares of CYNI.

Meritor

Meritor (MTOR) is engaged in the supply of a range of integrated systems, modules and components to original equipment manufacturers and the aftermarket for commercial vehicle, transportation and industrial sectors. This stock closed up 5.9% to $7.79 in Thursday's trading session.

Thursday's Range: $7.40-$7.86

52-Week Range: $3.83-$8.50

Thursday's Volume: 787,000

Three-Month Average Volume: 1.31 million

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From a technical perspective, MTOR bounced sharply higher here right off its 50-day moving average of $7.42 with lighter-than-average volume. This stock has found some buying interest over the last month, whenever it's pulled back just below its $7.40. Shares of MTOR are now quickly moving within range of triggering a major breakout trade. That trade will hit if MTOR manages to take out its 52-week high at $8.50 and then once it clears some past resistance at $8.74 with high volume.

Traders should now look for long-biased trades in MTOR as long as it's trending above $7.32 or above $7 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.31 million shares. If that breakout triggers soon, then MTOR 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 $10.31 to $12.

Meadowbrook Insurance Group

Meadowbrook Insurance Group (MIG) is a specialty commercial insurance underwriter and insurance administration services company, underwriting specialty property and casualty insurance programs and products on both an admitted and non-admitted basis. This stock closed up 2% to $6.09 in Thursday's trading session.

Thursday's Range: $5.94-$6.10

52-Week Range: $5.21-$8.90

Thursday's Volume: 353,000

Three-Month Average Volume: 408,859

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From a technical perspective, MIG bounced modestly higher here right above some near-term support at $5.86 with decent upside volume. This stock recently plunged lower from $8.87 to that low of $5.85 with heavy downside volume flows. That move has now pushed shares of MIG into oversold territory, since its current relative strength index reading is 26.60. Oversold can always get more oversold, but it's also an area where a stock can make a powerful bounce higher from if buyers move in.

Traders should now look for long-biased trades in MIG as long as it's trending above that low at $5.86 and then once it sustains a move or close above some near-term overhead resistance levels at $6.63 to its 200-day moving average at $6.95 with volume that hits near or above 408,859 shares. If we get that move soon, then MIG will set up to re-test or possibly take out its next major overhead resistance levels at $7.43 to its 50-day moving average at $7.72.

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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