4 Stocks Under $5 Spiking Higher
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.
>>5 Stocks Insiders Are Scooping Up SGOCO Group
SGOCO Group (SGOC) , which is focused on developing its own brands and distribution in the Chinese flat panel display market, is trading up 13.7% to $1.32 in recent trading.
Today's Range: $1.16-$1.41
52-Week Range: $0.61-$3.78
Three-Month Average Volume: 85,820
From a technical perspective, SGOC is ripping higher here right off its 50-day moving average of $1.13 with above-average volume. This stock recently formed a double bottom chart pattern at $1.12 prior to today's monster spike. Shares of SGOC are now moving within range of triggering a near-term breakout trade. That trade will hit if SGOC manages to take out some near-term overhead resistance levels at its 200-day of $1.38 and then above more resistance at $1.55 with high volume.
Traders should now look for long-biased trades in SGOC as long as it's trending above $1.12, and then once it sustains a move or close above those breakout levels with volume that hits near or above 85,820 shares. If that breakout triggers soon, then SGOC will set up to re-test or possibly take out its next major overhead resistance levels at $2.06 to $2.30. Elephant Talk Communications
Elephant Talk Communications (ETAK) provides Internet, telephony and data communications software services to both mobile phone companies and businesses. This stock is trading up 10% to $1.21 in recent trading.
Today's Range: $1.14-$1.22
52-Week Range: $2.10-$4.15