DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.
>>5 Big Stocks to Trade for Big Gains
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.
Builders FirstSource
Builders FirstSource (BLDR) provides wholesale voice services for carriers and service providers. This stock closed up 5.3% to $5.92 in Thursday's trading session.
Thursday's Range: $5.63-$5.92
52-Week Range: $4.27-$7.33
Thursday's Volume: 250,000
Three-Month Average Volume: 348,228
From a technical perspective, BLDR jumped higher here back above its 50-day moving average of $5.80 with lighter-than-average volume. This stock has been trending sideways and consolidating over the last two months, with shares moving between $5.15 on the downside and $6.20 on the upside. This spike on Thursday is now starting to push shares of BLDR within range of breaking out above the upper-end of its recent range. That breakout will hit if BLDR manages to take out its 200-day at $6.05 and then once it clears more resistance at $6.20 with high volume.
Traders should now look for long-biased trades in BLDR as long as it's trending above some near-term support levels at $5.55 or at $5.37 and then once it sustains a move or close above those breakout levels with volume that hits near or above 348,228 shares. If that breakout hits soon, then BLDR will set up to re-test or possibly take out its next major overhead resistance levels at $7 to its 52-week high at $7.33.
Medical Action Industries
Medical Action Industries (MDCI) develops, manufactures, markets and supplies a variety of disposable medical products. This stock closed up 4.7% to $6.19 in Thursday's trading session.
Thursday's Range: $5.95-$6.39
52-Week Range: $2.25-$10.07
Thursday's Volume: 63,000
Three-Month Average Volume: 121,755
From a technical perspective, MDCI spiked sharply higher here right off some near-term support at $5.89 and back above its 50-day moving average of $6.06 with lighter-than-average volume. This stock recently plunged lower from its high of $10.07 to its low of $5.04. During that sharp drop, shares of MDCI were consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of MDCI have now started to rebound sharply off that $5.04 low and it's quickly moving within range of triggering a major breakout trade. That trade will hit if MDCI manages to take out its 200-day moving average at $6.49 and then once it clears more resistance at $6.76 to $7.13 with high volume.
Traders should now look for long-biased trades in MDCI as long as it's trending above some key near-term support at $5.89 and then once it sustains a move or close above those breakout levels with volume that hits near or above 121,755 shares. If that breakout triggers soon, then MDCI will set up to re-test or possibly take out its next major overhead resistance levels at $8 to $9.
Aluminum Corporation of China
Aluminum Corporation of China (ACH) is a vertically integrated aluminum producer with operations in bauxite mining, alumina refining, primary aluminum smelting and aluminum fabrication. This stock closed up 4.8% to $9.36 in Thursday's trading session.
Thursday's Range: $9.13-$9.36
52-Week Range: $7.25-$13.29
Thursday's Volume: 94,000
Three-Month Average Volume: 81,112
From a technical perspective, ACH moved higher here right above its 50-day moving average of $8.77 with above-average volume. This stock has been uptrending very strong for the last three months, with shares soaring higher from its low of $7.24 to its recent high of $9.59. During that uptrend, shares of ACH have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ACI within range of triggering a near-term breakout trade. That trade will hit if ACH manages to take out some near-term overhead resistance levels at $9.59 to its 200-day moving average of $9.70 with high volume.
Traders should now look for long-biased trades in ACH as long as it's trending above its 50-day at $8.77 and then once it sustains a move or close above those breakout levels with volume that hits near or above 81,112 shares. If that breakout hits soon, then ACH will set up to re-test or possibly take out its next major overhead resistance levels at 10.50 to $11.50.
Merge Healthcare
Merge Healthcare (MRGE) develops software solutions that facilitate the sharing of images to create a more effective and efficient electronic healthcare experience for patients and physicians. This stock closed up 4.5% to $2.75 in Thursday's trading session.
Thursday's Range: $2.62-$2.75
52-Week Range: $2.27-$4.71
Thursday's Volume: 347,000
Three-Month Average Volume: 858,203
From a technical perspective, MRGE spiked higher here right above some near-term support at $2.55 with lighter-than-average volume. This stock recently gapped down sharply in August from $4.60 to below $2.40 with heavy downside volume. Following that gap down, shares of MRGE have started to stabilize and consolidate in a tight range between $2.35 on the downside and $2.98 on the upside. This move on Thursday is quickly pushing shares of MRGE within range of triggering a major breakout trade above the upper-end of its recent range. That trade will hit if MRGE manages to take out some near-term overhead resistance levels at $2.79 to $2.98 and then once it clears its gap down day high of around $3.20 with high volume.
Traders should now look for long-biased trades in MRGE as long as it's trending above some key near-term support levels at $2.54 or at $2.35 and then once it sustains a move or close above those breakout levels with volume that hits near or above 858,203 shares. If that breakout hits soon, then MRGE will set up to re-fill some of its previous gap down zone that started at $4.60.
Pendrell
Pendrell (PCO) is a fully-integrated intellectual property investment and advisory firm. This stock closed up 11.1% to $2.09 in Thursday's trading session.
Thursday's Range: $1.92-$2.09
52-Week Range: $1.04-$2.71
Thursday's Volume: 171,000
Three-Month Average Volume: 416,625
From a technical perspective, PCO skyrocketed higher here right off its 200-day moving average of $1.93 and back above its 50-day moving average of $2.04 with lighter-than-average volume. This stock recently formed a triple bottom chart pattern at $1.84, $1.85 and $1.89. Following that bottom, shares of PCO have now started to spike higher and move within range of triggering a near-term breakout trade. That trade will hit if PCO manages to take out some near-term overhead resistance levels at $2.11 to $2.22 with high volume.
Traders should now look for long-biased trades in PCO as long as it's trending above its 200-day at $1.93 or above more near-term support at $1.85 and then once it sustains a move or close above those breakout levels with volume that hits near or above 416,625 shares. If that breakout hits soon, then PCO will set up to re-test or possibly take out its next major overhead resistance levels at $2.50 to its 52-week high at $2.71. Any high-volume move above those levels will then give PCO a chance to trend well north of $3.
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.
RELATED LINKS:
>>5 Big-Volume Stocks to Trade for Breakouts
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>>5 Trades to Take From the Health Care Sector
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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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