DELAFIELD, Wis. (Stockpickr) -- These under-$10 oil and gas stocks were trading higher with strong upside volume on Wednesday. Here's how to trade them now.
Forest Oil (FST), an independent oil and gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids primarily in North America. This stock closed up 4.2% to $3.22 a share in Wednesday's trading session.
Wednesday's Range: $3.07-$3.26
52-Week Range: $2.85-$6.67
Thursday's Volume: 4.88 million
Three-Month Average Volume: 3.67 million
From a technical perspective, FST spiked sharply higher here with strong upside volume. This stock has been downtrending badly for the last four months and change, with shares sliding lower from its high of $6.52 to its recent low of $2.85. During that move, shares of FST have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of FST are now starting to come off its recent lows with strong upside volume flows. Market players should now look for a continuation move higher in the short-term if FST manages to take out Wednesday's high of $3.26 to its 50-day moving average of $3.40 with high volume.
Traders should now look for long-biased trades in FST as long as it's trending above Wednesday's low of $3.07 or above $3 and then once it sustains a move or close above $3.26 to $3.40 with volume that hits near or above 3.67 million shares. If that move materializes soon, then FST will set up to re-test or possibly take out its next major overhead resistance levels at $3.65 to $3.90, or even $4.50.
Quicksilver Resources (KWK), an independent oil and gas company, engages in the acquisition, exploration, development, production, and sale of natural gas, natural gas liquids, and oil in North America. This stock closed up 4.8% to $3.48 in Wednesday's trading session.
Wednesday's Range: $3.30-$3.52
52-Week Range: $1.44-$3.54
Thursday's Volume: 4.34 million
Three-Month Average Volume: 3.62 million
From a technical perspective, KWK ripped sharply higher here right above some near-term support at $3.20 and above its 50-day moving average of $3.08 with strong upside volume. This stock has been uptrending strong for the last six months, with shares soaring higher from its low of $1.69 to its recent high of $3.54. During that uptrend, shares of KWK have been making mostly higher lows and higher highs, which is bullish technical price action. This spike on Wednesday is quickly pushing shares of KWK within range of triggering a big breakout trade. That trade will hit if KWK manages to take out its 52-week high at $3.54 with high volume.
Traders should now look for long-biased trades in KWK as long as its trending above its 50-day at $3.08 and then once it sustains a move or close above its 52-week high at $3.54 with volume that hits near or above 3.62 million shares. If that breakout hits soon, then KWK will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $5 to $5.50.
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.