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4 Tech Stocks Under $10 Spiking Higher

Roberto Pedone | TheStreet.com Contributor
Thursday, 24 Jan 2013 | 10:53 AM ET
Scott Eells | Bloomberg | Getty Images

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.

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 several stocks under $10 that made large moves to the upside Wednesday.

Advanced Micro Devices

Advanced Micro Devices 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 percent 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 moving average 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.

Groupon

Groupon provides a local e-commerce marketplace that connects merchants to consumers by offering goods and services at a discount. The company features a daily deal on the best stuff to do, see, eat and buy. This stock closed up 5.2 percent to $5.09 on Wednesday.

Wednesday's Range: $4.81-$5.10
52-Week Range: $2.60-$25.84
Volume: 12.13 million
Three-Month Average Volume: 19.24 million

From a technical perspective, Groupon bounced higher right above some near-term support at $4.79 with lighter-than-average volume. This stock has been trending sideways for the last month and change, with shares moving between $4.43 on the downside and $5.59 on the upside. A high-volume move above the upper-end of its recent range will trigger a near-term breakout trade for shares of Groupon.

Traders should now look for long-biased trades in Groupon as long as it's trending above its 50-day moving average at $4.40, and then once it sustains a move or close above some key breakout levels at $5.25 to $5.59 with volume that hits near or above 19.24 million shares. If that breakout triggers soon, then Groupon will set up to re-test or possibly take out its next major overhead resistance level at $6. Any move above $6 will then give shares of Groupon a chance to re-fill its previous gap down zone from last August that started at $8.05.

OCZ Technology Group

OCZ Technology Group provides solid state drives and memory modules for computing devices and systems. It develops flexible and customizable component solutions quickly and efficiently to meet the ever changing market needs. This stock closed up 4.9 percent to $1.99 on Wednesday.

Wednesday's Range: $1.93-$2.04
52-Week Range: $1.11-$10.05
Volume: 3.04 million
Three-Month Average Volume: 2.40 million

From a technical perspective, OCZ Technology Group ripped higher Wednesday right above some near-term support at $1.83 with above-average volume. This move is quickly pushing shares of OCZ within range of triggering a major breakout trade. That trade will hit if OCZ manages to take out some key overhead resistance levels at $2.19 to $2.27 with high volume.

Traders should now look for long-biased trades in OCZ as long as it's trending above its 50-day moving average at $1.74, and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.40 million shares. If that breakout hits soon, then OCZ will set up to re-fill some of its previous gap down zone from last October that started near $3.30.

Linktone

Linktone provides entertainment-oriented telecom value-added services to mobile phone users over the 2G and 2.5G mobile telecommunications networks in China. This stock closed up 5.8 percent to $2.54 on Wednesday.

Wednesday's Range: $2.48-$2.58
52-Week Range: $1.03-$3.18
Volume: 54,000
Three-Month Average Volume: 38,267

From a technical perspective, Linktone spiked higher Wednesday right into its 50-day moving average of $2.54 with above-average volume. This stock has been trending sideways for the last five months, with shares moving between $2.09 on the downside and $2.81 on the upside. Shares of Linktone are now quickly moving within range of triggering a breakout trade above the upper-end of its recent range bound trading pattern. That trade will hit if Linktone manages to clear some near-term overhead resistance levels at $2.68 to $2.78 and then once it takes out more overhead resistance at $2.81 with high volume.

Traders should now look for long-biased trades in Linktone as long as it's trending above some key near-term support at $2.40 and then once it sustains a move or close above those breakout levels with volume that hits near or above 38,267 shares. If that breakout triggers soon, then Linktone will set up to re-test or possibly take out its next major overhead resistance level at $3.18. Any move above $3.18 will then push shares of Linktone into new 52-week-high territory, which is bullish technical price action. Some possible upside targets above $3.18 are $3.50 to $4.

—By TheStreet.com Contributor Roberto Pedone

Additional News: AMD Posts Narrower-Than-Expected Loss

Additional Views: Time to Dump Social Media?

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Disclosures:

At the time of publication, Roberto Pedone had no positions in stocks mentioned.

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Disclaimer

  Price   Change %Change
GROUPON
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AMD
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OCZTQ
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LTONY
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