EarthLink

EarthLink (ELNK) provides network, communications, and IT services in the U.S. This stock closed up 7.7% to $5.58 in Tuesdays trading session.

Tuesday's Range: $5.14-$5.62
52-Week Range: $4.70-$7.07
Tuesday's Volume: 3.71 million
Three-Month Average Volume: 909,108

From a technical perspective, ELNK trended sharply higher here right off its 50-day moving average of $5.12 and back above its 200-day moving average of $5.40 with heavy upside volume. This move also pushed shares of ELNK into breakout territory, since the stock took out some key near-term overhead resistance at $5.41. Market players should now look for a continuation move higher in the short-term if ELNK can manage to take out Tuesday's high of $5.62 with strong volume.

Traders should now look for long-biased trades in ELNK as long as it's trending above its 50-day at $5.12 and then once it sustains a move or close above $5.62 with volume that hits near or above 909,108 shares. If we get that move soon, then ELNK will set up to re-test or possibly take out its next major overhead resistance levels at $6.20 to $6.67.

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.

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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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