3 Health Care Stocks Under $10 Making Big Moves
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.
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.
BioScrip (BIOS) is a provider of pharmacy and home health services that partners with patients, physicians, hospitals, health care payors and pharmaceutical manufacturers. This stock closed up 3.3% to $7.07 in Tuesday's trading session.
Tuesday's Range: $6.81-$7.26
52-Week Range: $6.61-$17.62
Tuesday's Volume: 2.35 million
Three-Month Average Volume: 1.48 million
From a technical perspective, BIOS spiked higher here right above its 52-week low of $6.61 with strong upside volume. This stock has been downtrending badly for the last four months, with shares plunging lower from its high of $17.62 to its recent low of $6.61. During that downtrend, shares of BIOS have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of BIOS have now entered oversold territory, since its current relative strength index reading is 26.63. Oversold can always get more oversold, but it's also an area where a stock can make a powerful bounce higher from.
Traders should now look for long-biased trades in BIOS as long as it's trending above its 52-week low of $6.61 and then once it sustains a move or close above Tuesday's high of $7.26 with volume that hits near or above 1.48 million shares. If we get that move soon, then BIOS will set up to re-test or possibly take out its next major overhead resistance levels $8 to $8.53. Any high-volume move above those levels will then give BIOS a chance to tag its 50-day moving average at $9.41.