Thursday, February 12, 2015

4 Stocks Under $10 to Trade for Breakouts: Travelzoo, VirnetX and More

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers. 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 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. Must Read: Warren Buffett's Top 10 Dividend Stocks VirnetX VirnetX develops software and technology solutions for securing real-time communications over the Internet. This stock is trading up 3.3% to $5.49 in Thursday's trading session. Thursday's Range: $5.32-$5.58 52-Week Range: $3.80-$25.49 Thursday's Volume: 66,000 Three-Month Average Volume: 523,415 From a technical perspective, VHC is trending higher here right off its 50-day moving average of $5.20 with light volume. This stock has been consolidating over the last few weeks right above its 50-day moving average. This spike to the upside on Thursday is now quickly pushing shares of VHC within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will trigger if VHC manages to take out some near-term overhead resistance levels at $5.74 to $6.16 with high volume. Traders should now look for long-biased trades in VHC as long as it's trending above some near-term support at $5.07 or above $5 and then once it sustains a move or close above those breakout levels with volume that hits near or above 523,415 shares. If that breakout triggers soon, then VHC will set up to re-test or possibly take out its next major overhead resistance level at $6.85. Any high-volume move above $6.85 will then give VHC a chance to re-fill some of its previous gap-down-day zone from last September that started near $9. Must Read: 10 Stocks Carl Icahn Loves Cenveo Cenveo provides print related products in the U.S. and internationally. This stock is trading up 3.7% to $1.96 in Thursday's trading session. Thursday's Range: $1.77-$2.06 52-Week Range: $1.39-$3.85 Thursday's Volume: 903,000 Three-Month Average Volume: 435,195 From a technical perspective, CVO is jumping higher here right off some near-term support at $1.80 with strong upside volume flows. This spike to the upside on Thursday has briefly pushed shares of CVO back above its 50-day moving average of $2 a share. This move is also starting to push shares of CVO within range of triggering a big breakout trade above some key near-term overhead resistance levels. That trade will hit if CVO manages to clear some key near-term overhead resistance levels at $2.10 to $2.11 and then above more resistance at $2.22 with high volume. Traders should now look for long-biased trades in CVO as long as it's trending above Thursday's intraday low of $1.77 or above some past support at $1.72 and then once it sustains a move or close above those breakout levels with volume that hits near or above 435,195 shares. If that breakout begins soon, then CVO will set up to re-test or possibly take out its next major overhead resistance levels at $2.38 to $2.49, or even $2.64 to its 200-day moving average of $2.67. Must Read: 10 Stocks George Soros Is Buying Goodrich Petroleum Goodrich Petroleum , an independent oil and natural gas company, is engaged in the exploration, development, and production of oil and natural gas. This stock is trading up 3.5% to $3.25 in Thursday's trading session. Thursday's Range: $3.17-$3.35 52-Week Range: $2.35-$30.52 Thursday's Volume: 1.57 million Three-Month Average Volume: 3.60 million From a technical perspective, GDP is jumping higher here right above some near-term support at $2.97 with lighter-than-average volume. This stock has been uptrending over the last few weeks, with shares moving higher from its low of $2.35 to its recent high of $3.48. During that uptrend, shares of GDP have been making mostly higher lows and higher highs, which is bullish technical price action. This spike to the upside on Thursday is now quickly pushing shares of GDP within range of triggering a big breakout trade. That trade will trigger if GDP manages to take out some key near-term overhead resistance levels at $3.48 to its 50-day moving average of $3.58 with high volume. Traders should now look for long-biased trades in GDP as long as it’s trending above some near-term support at $2.97 and then once it takes out those breakout levels with volume that hits near or above 3.60 million shares. If that breakout materializes soon, then GDP will set up to re-test or possibly take out its next major overhead resistance levels at $4 to around $4.50, or even $5 a share. Must Read: 11 Stocks Warren Buffett Loves Travelzoo Travelzoo , an Internet media company, together with its subsidiaries, publishes travel, entertainment and local deals from travel and entertainment companies, and local businesses in North America, Europe and the Asia Pacific. This stock is trading up 4.6% to $9.26 in Thursday's trading session. Thursday's Range: $9.00-$9.26 52-Week Range: $8.45-$24.27 Thursday's Volume: 81,000 Three-Month Average Volume: 110,319 From a technical perspective, TZOO is gapping sharply higher here with decent upside volume flows. This stock recently formed a double bottom chart pattern at $8.50 to $8.45. That potential bottom is coming after shares of TZOO fell sharply off its last December high of $13.96 to its new 52-week low of $8.45. This spike to the upside on Thursday is now quickly pushing shares of TZOO within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will hit if TZOO manages to take out some key near-term overhead resistance at $9.28 to around $10 with high volume. Traders should now look for long-biased trades in TZOO as long as it's trending above those double bottom support levels and then once it sustains a move or close above $9.28 to around $10 with volume that hits near or above 110,319 shares. If that breakout develops soon, then TZOO will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $11.27 to $11.58. -- Written by Roberto Pedone in Delafield, Wis. Must Read: 10 Stocks Billionaire John Paulson Loves Follow Stockpickr on Twitter and become a fan on Facebook.


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