4 Tech Stock Under $10 Spiking Higher - views
Stock Quotes in this Article: AMD, LTON, OCZ, GRPN
By Roberto Pedone
01/24/13 - 07:18 AM EDT
WINDERMERE, Fla. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.
Stocks that are making large moves like these 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.
5 Stocks Ready to Break Out
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 made large moves to the upside Wednesday.
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Advanced Micro Devices
Advanced Micro Devices (AMD) is a semiconductor company with manufacturing, research and development, and sales and administrative facilities throughout the world. It provides processing solutions for the computing and graphics markets. This stock closed up 11.8% to $2.74 on Wednesday.
Wednesday's Range: $2.59-$2.75
52-Week Range: $1.81-$8.35
Volume: 66.20 million
Three-Month Average Volume: 26.24 million
Shares of AMD ripped higher Wednesday after the company reported revenue that topped Wall Street estimates.
From a technical perspective, AMD soared higher right above its 50-day moving average of $2.33 with massive upside volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $1.81 to its recent high of $2.78. During that move, shares of AMD have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed AMD within range of triggering a major breakout trade. That trade will hit if AMD manages to take out some near-term overhead resistance levels at $2.78 to $2.80 with high volume.
Traders should now look for long-biased trades in AMD as long as it’s trending above its 50-day at $2.33, and then once it sustains a move or close above those breakout levels with volume that hits near or above 26.24 million shares. If that breakout triggers soon, then AMD will set up to re-test or possibly take out its next major overhead resistance levels $3 to $3.28. Any high-volume move above $3.28 could then put $3.50 to $4 within range for shares of AMD.