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.
BlackBerry (BBRY) engages in the design, manufacture and marketing of wireless solutions worldwide. This stock is trading up 5% to $9.44 in Tuesday's trading session.
Tuesday's Range: $9.24-$9.65
52-Week Range: $5.44-$16.82
Tuesday's Volume: 19.28 million
Three-Month Average Volume: 25.13 million
From a technical perspective, BBRY is jumping higher here with decent upside volume flows. This stock recently formed a double bottom chart pattern at $8.92 to $8.95. Following that bottom, shares of BBRY have started to spike higher and move within range of triggering a near-term breakout trade. That trade will hit if BBRY manages to take out its 200-day moving average of $9.72 to some more near-term overhead resistance at $10.10 with high volume.
Traders should now look for long-biased trades in BBRY as long as it's trending above those double bottom support zones at $8.95 to $8.92 and then once it sustains a move or close above those breakout levels with volume that hits near or above 25.13 million shares. If that breakout hits soon, then BBRY will set up to re-test or possibly take out its next major overhead resistance levels at $10.85 to $11.65, or even $12.18.