DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.
>>5 Blue-Chip Stocks to Trade for 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.
ReachLocal
ReachLocal (RLOC) provides a suite of online marketing and reporting solutions to small and medium-sized businesses. This stock closed up 2.9 % to $7.04 in Thursday's trading session.
Thursday's Range: $6.76-$7.06
52-Week Range: $5.87-$14.45
Thursday's Volume: 118,000
Three-Month Average Volume: 150,905
From a technical perspective, RLOC spiked notably higher here and broke out above some key overhead resistance levels at $6.87 to $6.90 with lighter-than-average volume. This breakout is significant, since shares of RLOC have been tapping up against those resistance levels and failing for the last two months. Market players should now look for a continuation move higher in the short-term if RLOC manages to clear Thursday's intraday high of $7.06 with high volume.
Traders should now look for long-biased trades in RLOC as long as it's trending above Thursday's low of $6.76 or above more support levels around $6.50 to $6.30 and then once it sustains a move or close above $7.06 with volume that hits near or above 150,905 shares. If that move begins soon, then RLOC will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $7.96 to its gap-down-day high from May near $8.50. Any high-volume move above $8.50 will then give RLOC a chance to re-fill some of its previous gap-down-day zone that started near $10.50.
Higher One
Higher One (ONE) provides technology-based refund disbursement, payment processing, and data analytics services to higher education institutions and students in the U.S. This stock closed up 1.9% to $3.74 in Thursday's trading session.
Thursday's Range: $3.61-$3.78
52-Week Range: $3.48-$11.93
Thursday's Volume: 199,000
Three-Month Average Volume: 332,408
From a technical perspective, ONE spiked modestly higher here right above some near-term support at $3.53 with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $3.48 to $3.53. Following that bottom, shares of ONE have started to move slightly higher and push within range of triggering a major breakout trade. That trade will hit if ONE manages to take out some key near-term overhead resistance levels at $3.85 to $4 and then above more resistance at $4.25 with high volume.
Traders should now look for long-biased trades in ONE as long as it's trending above those double bottom support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 332,408 shares. If that breakout kicks off soon, then ONE will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $4.84 to $5, or even $5.50 to $5.75.
Empire Resorts
Empire Resorts (NYNY), through its subsidiaries, is engaged in hospitality and gaming industries in New York. This stock closed up 1.2% to $6.65 a share in Thursday's trading session.
Thursday's Range: $6.56-$6.70
52-Week Range: $2.30-$9.39
Thursday's Volume: 84,000
Three-Month Average Volume: 135,157
From a technical perspective, NYNY spiked modestly higher here right above some near-term support at $6.20 with lighter-than-average volume. This spike higher on Thursday is starting to push shares of NYNY within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will hit if NYNY takes out its 50-day moving average at $6.77 and then once it clears more key overhead resistance levels at $6.80 to $6.88 and $6.98 with high volume. Those resistance levels have held this stock down for almost two months, so a break above them should be considered bullish price action.
Traders should now look for long-biased trades in NYNY as long as it's trending above some key near-term support levels at $6.20 or at $6.05 and then once it sustains a move or close above those breakout levels with volume that hits near or above 135,157 shares. If that breakout triggers soon, then NYNY will set up to re-test or possibly take out its next major overhead resistance level just above $7.50. Any high-volume move above that level will then give NYNY a chance to re-fill some of its previous gap-down-day zone from April that started near $9.
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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