3 Stocks Under $10 to Trade for Breakouts
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 Rocket Stocks to Buy for Blastoff Earnings Season Gains With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside. China Ming Yang Wind Power Group (MY - Get Report) designs, manufactures, sells and services megawatt-class wind turbines in the People's Republic of China and the Republic of India. This stock closed up 3.5% to $3.20 in Tuesday's trading session. Tuesday's Range: $3.13-$3.21
52-Week Range: $1.48-$4.34
Tuesday's Volume: 997,000
Three-Month Average Volume: 1.55 million From a technical perspective, MY jumped higher here with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $2.93 to $2.95. Following that bottom, shares of MY have started to spike higher and move within range of triggering a near-term breakout trade. That trade will hit if MY manages to take out its 50-day moving average of $3.26 to some more near-term overhead resistance at $3.29 with high volume. Traders should now look for long-biased trades in MY as long as it's trending above those double bottom support zones and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.55 million shares. If that breakout gets started soon, then MY will set up to re-test or possibly take out its next major overhead resistance levels at $3.61 to $3.88, or even $4 to $4.20.
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