DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.
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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.
Alaska Communications Systems
Alaska Communications Systems (ALSK) provides an integrated communications services to consumer and business customers in and out of Alaska. This stock closed up 8.2% to $2.24 in Tuesday's trading session.
Tuesday's Range: $2.06-$2.38
52-Week Range: $1.55-$3.90
Thursday's Volume: 974,000
Three-Month Average Volume: 523,059
From a technical perspective, ALSK spiked sharply higher here right off some near-term support at $2.05 and back above its 200-day moving average of $2.19 with strong upside volume. This move is quickly pushing shares of ALSK within range of triggering a major breakout trade. That trade will hit if ALSK manages to take out some near-term overhead resistance at $2.35 to Tuesday's high of $2.38 with high volume.
Traders should now look for long-biased trades in ALSK as long as it's trending above some key near-term support at $2.05 and then once it sustains a move or close above those breakout levels with volume that hits near or above 523,059 shares. If that breakout hits soon, then ALSK will set up to re-test or possibly take out its next major overhead resistance levels at $2.82 to $2.83. Any high-volume move above those levels will then give ALSK a chance to tag $3.20 to $3.50.
Shanda Games
Shanda Games (GAME) develops, sources, and operates online games in the Peoples Republic of China. This stock closed up 5.7% to $4.20 in Tuesday's trading session.
Tuesday's Range: $3.96-$4.24
52-Week Range: $2.68-$6.42
Tuesday's Volume: 1.84 million
Three-Month Average Volume: 1.34 million
From a technical perspective, GAME spiked sharply higher here right above its 200-day moving average of $3.86 with above-average volume. This stock recently formed a double bottom chart pattern at $3.87 to $3.88. Following that bottom, shares of GAME are now starting to trend within range of triggering a near-term breakout trade. That trade will hit if GAME manages to take out its 50-day moving average of $4.26 to some more near-term overhead resistance levels at $4.45 to $4.51 with high volume.
Traders should now look for long-biased trades in GAME as long as it's trending above its 200-day at $3.86 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.34 million shares. If that breakout triggers soon, then GAME will set up to re-test or possibly take out its next major overhead resistance levels at $4.89 to $4.98. Any high-volume move above those levels will then give GAME a chance to tag $6.
Aehr Test Systems
Aehr Test Systems (AEHR) develops, manufactures and sells systems designed to reduce the cost of testing and to perform reliability screening, or burn-in, of complex logic and memory devices. This stock closed up 9.1% to $3.33 in Tuesday's trading session.
Tuesday's Range: $2.99-$3.48
52-Week Range: $0.72-$3.59
Tuesday's Volume: 183,000
Three-Month Average Volume: 50,542
From a technical perspective, AEHR exploded higher here with above-average volume. This stock has been uptrending strong for the last month, with shares moving higher from its low of $2.22 to its intraday high of $3.48. During that uptrend, shares of AEHR have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AEHR within range of triggering a big breakout trade. That trade will hit if AEHR manages to take out Tuesday's high of $3.48 to its 52-week high at $3.59 with high volume.
Traders should now look for long-biased trades in AEHR as long as it's trending above support at $2.80 or above its 50-day at $2.65, and then once it sustains a move or close above those breakout levels with volume that hits near or above 50,542 shares. If that breakout hits soon, then AEHR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $4.50 to $5.
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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