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Linktone(LTON) provides entertainment-oriented telecom value-added services to mobile phone users over the 2G and 2.5G mobile telecommunications networks in China. This stock closed up 5.8% to $2.54 on Wednesday.
Wednesday's Range: $2.48-$2.58
52-Week Range: $1.03-$3.18
Three-Month Average Volume: 38,267
From a technical perspective, LTON spiked higher Wednesday right into its 50-day moving average of $2.54 with above-average volume. This stock has been trending sideways for the last five months, with shares moving between $2.09 on the downside and $2.81 on the upside. Shares of LTON are now quickly moving within range of triggering a breakout trade above the upper-end of its recent range bound trading pattern. That trade will hit if LTON manages to clear some near-term overhead resistance levels at $2.68 to $2.78 and then once it takes out more overhead resistance at $2.81 with high volume.
Traders should now look for long-biased trades in LTON as long as it's trending above some key near-term support at $2.40 and then once it sustains a move or close above those breakout levels with volume that hits near or above 38,267 shares. If that breakout triggers soon, then LTON will set up to re-test or possibly take out its next major overhead resistance level at $3.18. Any move above $3.18 will then push shares of LTON into new 52-week-high territory, which is bullish technical price action. Some possible upside targets above $3.18 are $3.50 to $4.
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 Winderemere, Fla.