Friday, December 13, 2013

3 Stocks Under $10 Moving Higher

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Big Trades for Year-End Gains

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.

>>5 Stocks Insiders Love Right Now

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.

Ambit Biosciences

Ambit Biosciences (AMBI) is a development-stage oncology company engaged in the clinical development of novel small molecules for the treatment of cancer. This stock closed up 7.6% to $8.45 in Thursday's trading session.

Thursday's Range: $7.91-$8.79

52-Week Range: $6.22-$21.44

Thursday's Volume: 650,000

Three-Month Average Volume: 93,875

From a technical perspective, AMBI spiked sharply higher here right above some near-term support at $7.77 with heavy upside volume. This stock recently gapped down sharply from $13 to $8 with monster downside volume. Following that gap down, shares of AMBI have trended sideways and tag a recent low of $7.77. Shares of AMBI are now starting to spike higher off that low and it's quickly moving within range of triggering a major breakout trade. That trade will hit if AMBI manages to take out some near-term overhead resistance levels at $9 to its gap down day high of $9.52 with high volume.

Traders should now look for long-biased trades in AMBI as long as it's trending above Thursday's low of $7.91 or above its recent low of $7.77, and then once it sustains a move or close above those breakout levels with volume that hits near or above 93,875 shares. If that breakout triggers soon, then AMBI will set up to re-fill some of its previous gap down zone that started at $13. Some possible upside targets if AMBI gets into that gap with volume are $11 to $11.50.

Alimera Sciences

Alimera Sciences (ALIM) is a biopharmaceutical company engaged in the research, development, and commercialization of ophthalmic pharmaceuticals. This stock closed up 0.89% to $2.26 in Thursday's trading session.

Thursday's Range: $2.14-$2.30

52-Week Range: $1.37-$5.69

Thursday's Volume: 56,000

Three-Month Average Volume: 121,603

From a technical perspective, ALIM spiked modestly higher here with lighter-than-average volume. This stock has been trending sideways and consolidating for the last few weeks, with shares moving between $2 on the downside and $2.83 on the upside. Shares of ALIM are now starting to move within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern. That trade will hit if ALIM manages to take out its 50-day moving average at $2.40, and then once it clears more near-term overhead resistance levels at $2.48 to $2.83 with high volume.

Traders should now look for long-biased trades in ALIM as long as it's trending above some near-term support at $2 and then once it sustains a move or close above those breakout levels with volume that hits near or above 121,603 shares. If that breakout hits soon, then ALIM will set up to re-test or possibly take out its next major overhead resistance levels at $3.50 to $4.

Dendreon

Dendreon (DNDN) is a biotechnology company focused on the discovery, development and commercialization of novel therapeutics that improve cancer treatment options for patients. This stock closed up 4.5% to $3.21 in Thursday's trading session.

Thursday's Range: $3.02-$3.23

52-Week Range: $2.23-$7.22

Thursday's Volume: 5.85 million

Three-Month Average Volume: 4.26 million

From a technical perspective, DNDN spiked sharply higher here and broke out above some near-term overhead resistance at $3.15 with strong upside volume. This stock has been uptrending for the last month and change, with shares moving higher from its low of $2.35 to its intraday high of $3.23. During that uptrend, shares of DNDN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of DNDN within range of triggering another big breakout trade. That trade will hit if DNDN manages to take out Thursday's high of $3.23 and then once it clears more past resistance at $3.41 with high volume.

Traders should now look for long-biased trades in DNDN as long as it's trending above some near-term support levels at $2.88 or at its 50-day of $2.70 and then once it sustains a move or close above those breakout levels with volume that hits near or above 4.26 million shares. If that breakout triggers soon, then DNDN will set up to re-test or possibly take out its next major overhead resistance level at its 200-day of $3.79. Any high-volume move above that level will then give DNDN a chance to re-fill its previous gap down zone from August that started just above $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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