DELAFIELD, Wis. (Stockpickr) -- These health care stocks under $10 were trading higher on Wednesday. Here's how to trade them now.
OvaScience (OVAS) , a life sciences company, is engaged in the discovery, development and commercialization of new treatments for infertility. This stock closed up 5.5% to $9.50 a share in Wednesday's trading session.
Wednesday's Range: $9.08-$9.53
52-Week Range: $8.14-$16.00
Thursday's Volume: 72,000
Three-Month Average Volume: 31,287
From a technical perspective, OVAS surged sharply higher here back above its 50-day moving average of $9.29 with above-average volume. This stock recently formed a major bottoming chart pattern after the stock found support at $8.37 to $8.41, which was just above some previous support levels at $8.31 to $8.14. Market Shares of OVAS have now started to spike higher above those key support levels. Market players should look for a continuation move higher in the short-term if OVAS takes out Wednesday's high of $9.53 with strong volume.
Traders should now look for long-biased trades in OVAS as long as it's trending above Wednesday's low of $9.08 and then once it sustains a move or close above $9.53 with volume that hits near or above 31,287 shares. If we get that move soon, then OVAS will set up to re-test or possibly take out its next major overhead resistance levels $10.05 to $10.41 or $10.65 to its 200-day moving average of $10.96.
Response Genetics (RGDX) , a life science company, engages in the research, development, marketing and sale of pharmacogenomic tests for use in the treatment of cancer primarily in the U.S., Asia, and Europe. This stock closed up 1.3% to $1.49 in Wednesday's trading session.
Wednesday's Range: $1.44-$1.49
52-Week Range: $1.09-$2.93
Thursday's Volume: 115,000
Three-Month Average Volume: 335,825
From a technical perspective, RGDX trended modestly higher here right above its 50-day moving average of $1.35 with lighter-than-average volume. This stock is starting to trend within range of triggering a big breakout trade. That trade will hit if RGDX manages to take out some near-term overhead resistance levels at $1.50 to $1.60 and then once it clears its 200-day moving average of $1.68 with high volume.
Traders should now look for long-biased trades in RGDX as long as it's trending above its 50-day at $1.35 and then once it sustains a move or close above those breakout levels with volume that hits near or above 335,825 shares. If that breakout hits soon, then RGDX will set up to re-test or possibly take out its next major overhead resistance levels at $2 to $2.20.
To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
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.