DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.
>>5 Stocks Ready to Break Out
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.
Stereotaxis
Stereotaxis (STXS) designs, manufactures and markets cardiology instrument control system in the U.S. and internationally. This stock closed up 10.9% to $3.64 in Tuesday's trading session.
Tuesday's Range: $3.26-$4.05
52-Week Range: $1.10-$9.90
Tuesday's Volume: 3.92 million
Three-Month Average Volume: 1.37 million
From a technical perspective, STXS ripped sharply higher here right above some near-term support at $3.11 and back above its 50-day moving average of $3.61 with heavy upside volume. This move briefly pushed shares of STXS into breakout territory, since the stock flirted with some near-term overhead resistance at $3.88. Shares of STXS closed just below that level at $3.64. Shares of STXS are now starting to move within range of triggering an even bigger breakout trade. That trade will hit if STXS manages to take out Tuesday's high of $4.05 to some more near-term overhead resistance at $4.30 with high volume.
Traders should now look for long-biased trades in STXS as long as it's trending above Tuesday's low of $3.26 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.37 million shares. If that breakout hits soon, then STXS will set up to re-test or possibly take out its next major overhead resistance levels at $5 to $6.24.
Quantum Fuel Systems Technologies Worldwide
Quantum Fuel Systems Technologies Worldwide (QTWW) designs, develops and produces compressed natural gas storage tanks and packaged fuel systems and other advanced fuel and propulsion systems for alternative fuel vehicle applications. This stock closed up 3.8% to $6.73 in Tuesday's trading session.
Tuesday's Range: $6.11-$6.75
52-Week Range: $1.85-$7.64
Tuesday's Volume: 710,000
Three-Month Average Volume: 799,041
From a technical perspective, QTWW trended higher here right above its 50-day moving average of $5.81 with decent upside volume. This stock had been downtrending over the last month, with shares dropping from its high of $7.64 to its recent low of $5.85. During that move, shares of QTWW have been making mostly lower highs and lower lows, which is bearish technical price action. That said, the downside volatility for QTWW now looks over in the short-term and the stock looks ready to reverse its downtrend and enter a new uptrend.
Traders should now look for long-biased trades in QTWW as long as it's trending above Tuesday's low of $6.11 or above its 50-day at $5.81, and then once it sustains a move or close above Tuesday's high of $6.75 with volume that hits near or above 799,041 shares. If we get that move soon, then QTWW will set up to re-test or possibly take out its next major overhead resistance levels at $7.20 to $7.43. Any high-volume move above those levels will then give QTWW a chance to re-test or possibly take out its 52-week high at $7.64.
Prana Biotechnology
Prana Biotechnology (PRAN) researches and develops therapeutic drugs for the treatment of neurological disorders in Australia. This stock closed up 8.8% to $6.88 in Tuesday's trading session.
Tuesday's Range: $6.29-$6.90
52-Week Range: $2.03-$7.48
Tuesday's Volume: 701,000
Three-Month Average Volume: 676,562
From a technical perspective, PRAN spiked sharply higher here right above some near-term support at $6 with above-average volume. This stock has been uptrending strong for the last two months and change, with shares moving higher from its low of $3.44 to its recent high of $7.48. During that uptrend, shares of PRAN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of PRAN within range of triggering a big breakout trade. That trade will hit if PRAN manages to take out Tuesday's high of $6.90 to its 52-week high of $7.48 with high volume.
Traders should now look for long-biased trades in PRAN as long as it's trending above some near-term support levels at $6 or at $5.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 676,562 shares. If that breakout hits soon, then PRAN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $9 to $10.
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.
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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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