7 Under-$10 Stocks Rising on Explosive Volume
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.
Active Network (ACTV)
This company provides applications that form an online network connecting a fragmented and diverse group of activity and event organizers with a large base of potential participants. This stock is trading up 6.2% to $4.96 in recent trading.
Today's Range: $4.82-$4.98
52-Week Range: $4.60-$17.74
Three-Month Average Volume: 1.05 million
From a technical perspective, ACTV is bouncing sharply higher here right above some near-term support levels at $4.60 to $4.67 with lighter volume. This stock recently gapped down big from over $9 to $5.02 with heavy volume. Following that move, shares of ACTV went on to hit a new low of $4.60, but the stock has now started to rebound to its current price of $4.95. That rebound is quickly pushing ACTV within range of triggering a near-term breakout trade. That trade will hit once ACTV takes out some near-term overhead resistance at $4.94 to $5.18 with high volume.
Traders should now look for long-biased trades in ACTV as long as it's trending above $4.60, and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.05 million shares. If that breakout triggers soon, then ACTV will set up to bounce off oversold levels, since its current relative strength index (RSI) reading is 25.24. Some possible upside targets are $5.50 to $5.87. Any high-volume move above its gap down day high near $6.50 will then give ACTV a chance to fill some of its previous gap.
Yingli Green Energy (YGE)