4 Basic Materials Stocks Under $10 Making Big Moves

DELAFIELD, Wis. (Stockpickr) – As part of a daily routine as an active trader or investor, one should always be tracking the stocks in the market that are making the biggest percentage gains and the biggest percentage losses.

Stocks that are making large moves to the upside are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

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 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 large moves to the upside.

Seventy Seven Energy

Seventy Seven Energy  (SSE) provides oilfield services in the U.S. This stock is trading up 1% to $6.19 in Tuesday's trading session.

Tuesday's Range: $5.93-$6.19
52-Week Range: $0.02-$27.17
Tuesday's Volume: 628,000
Three-Month Average Volume: 1.23 million

From a technical perspective, SSE is trending modestly higher here right above some near-term support at around $5.70 to $5.60 with decent upside volume flows. This stock has been uptrending very strong for the last three months, with shares moving sharply higher from its low of $2.79 to its recent high of $6.30. During that uptrend, shares of SSE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SSE within range of triggering a near-term breakout trade. That trade will hit if SSE manages to take out some near-term overhead resistance levels at $6.25 to $6.30 with high volume.

Traders should now look for long-biased trades in SSE as long as it’s trending above some near-term support levels at $5.70 to $5.60 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.23 million shares. If that breakout triggers soon, then SSE will set up to re-test or possibly take out its next major overhead resistance levels $7 to $7.80, or even $9.

Arch Coal

Arch Coal (ACI) produces and sells thermal and metallurgical coal from surface and underground mines located in the U.S. This stock is trading up 3.2% to 53 cents per share in Tuesday's trading session.

Tuesday's Range: $0.51-$0.54
52-Week Range: $0.46-$3.77
Tuesday's Volume: 2.64 million
Three-Month Average Volume: 4.03 million

From a technical perspective, ACI is trending notably higher here with decent upside volume flows. This stock has started to rebound over the last few trading sessions off its new 52-week low of 46 cents per share with strong upside volume flows. This rebound is coming off extremely oversold levels, since the current relative strength index reading for ACI is well below 30. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher from. Market players should now watch for ACI to take some key near-term overhead resistance levels at 55 cents to 60 cents per share with high volume.

Traders should now look for long-biased trades in ACI as long as it's trending above some near-term support levels at 50 cents per share or above its 52-week low of 46 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 4.03 million shares. If that breakout develops soon, then ACI will set up to re-test or possibly take out its next major overhead resistance levels at 70 cents to 80 cents per share.

Walter Energy

Walter Energy  (WLT) produces and exports metallurgical coal for the steel industry. This stock is trading up 11% to 50 cents per share in Tuesday's trading session.

Tuesday's Range: $0.45-$0.51
52-Week Range: $0.30-$6.84
Tuesday's Volume: 579,000
Three-Month Average Volume: 2.47 million

From a technical perspective, WLT is ripping sharply higher here right above some near-term support at around 45 cents per share with lighter-than-average volume. This stock has been uptrending a bit over the last month, with shares moving higher from its low of 34 cents to its recent high of 55 cents per share. During that uptrend, shares of WLT have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of WLT within range of triggering a near-term breakout trade. That trade will trigger if WLT manages to clear some key near-term overhead resistance levels at 50 cents to 55 cents per share with high volume.

Traders should now look for long-biased trades in WLT as long as it's trending above some near-term support levels at 45 cents to 42 cents per share or even 40 cents per share and then once it sustains a move or close above those breakout levels with volume that registers near or above 2.47 million shares. If that breakout materializes soon, then WLT will set up to re-test or possibly take out its next major overhead resistance levels at 62 cents to 70 cents per share, or even 75 cents to 80 cents per share.

Cliffs Natural Resources

Cliffs Natural Resources  (CLF), a mining and natural resources company, produces iron ore and metallurgical coal. This stock is trading up 7% to $5.47 in Tuesday's trading session.

Tuesday's Range: $5.10-$5.56
52-Week Range: $4.12-$18.41
Tuesday's Volume: 4.39 million
Three-Month Average Volume: 9.88 million

From a technical perspective, CLF is ripping sharply higher here right off some near-term support at $5.08 and back above its 50-day moving average of $5.37 with lighter-than-average volume. This sharp move to the upside on Tuesday is starting to push shares of CLF within range of triggering a major breakout trade above some key near-term overhead resistance. That trade will hit if CLF manages to take out some key near-term overhead resistance at $5.66 with high volume.

Traders should now look for long-biased trades in CLF as long as it's trending above some key near-term support at $5.08 and then once it sustains a move or close above $5.66 with volume that hits near or above 9.88 million shares. If that breakout gets set off soon, then CLF will set up to re-test or possibly take out its next major overhead resistance levels at $6.87 to $7.28, or even $7.41.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

More from Opinion

7 Takeaways From Google's $550-Million Investment in Alibaba Rival JD.com

7 Takeaways From Google's $550-Million Investment in Alibaba Rival JD.com

It's Just Not Smart For Investors to Ignore the Threat of a Trade War

It's Just Not Smart For Investors to Ignore the Threat of a Trade War

To Think a Trade War's Still Just a Threat Is the Dumbest Thing on Wall Street

To Think a Trade War's Still Just a Threat Is the Dumbest Thing on Wall Street

Flashback Friday in Politics: Trade Wars, Manafort, Immigration Dominate Minds

Flashback Friday in Politics: Trade Wars, Manafort, Immigration Dominate Minds

Microsoft and Sony's Rumored Game Console Plans Bode Well for AMD

Microsoft and Sony's Rumored Game Console Plans Bode Well for AMD