DELAFIELD, Wis. (Stockpickr) -- A smart trader keeps a close eye on unusual upside volume in stocks -- and unusual volume in a stock that trades below $10 should really make you sit up and pay attention.
Stocks that trade below $10 a share can make big moves to the upside very quickly, and short-term traders can try to capture some of that massive volatility. 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.
With that in mind, let's take a closer look at a several stocks under $10 that are making sharp moves higher with unusual upside volume flows.
Pacific Biosciences of California
Pacific Biosciences of California (PACB) develops, manufactures and markets an integrated platform for genetic analysis. This stock is trading up 8% to $7.05 in Tuesday's trading session.
Tuesday's Range: $6.51-$7.17
52-Week Range: $1.95-$8.20
Tuesday's Volume: 1.22 million
Three-Month Average Volume: 891,153
From a technical perspective, PACB is soaring higher here right above some near-term support at $6.18 with above-average volume. This move is quickly pushing shares of PACB within range of triggering a major breakout trade. That trade will hit if PACB manages to take out some near-term overhead resistance levels at $7.45 to $7.59 and then once it clears its 52-week high at $8.20 with high volume.
Traders should now look for long-biased trades in PACB as long as it's trending above Tuesdays low of $6.50 or above more support at $6.18 and then once it sustains a move or close above those breakout levels with volume that hits near or above 891,153 shares. If that breakout hits soon, then PACB will set up to enter new 52-week-high territory above $8.20, which is bullish technical price action. Some possible upside targets off that breakout are $10 to $11.