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 large moves to the upside today.
SatCon Technology is a clean energy technology provider of utility grade power solutions for the renewable energy market, primarily the large-scale commercial and utility-scale solar photovoltaic markets.
From a technical perspective, SatCon is moving to the upside here right off some near-term support around $1 with above average volume. This move is quickly pushing the stock within range of triggering a near-term-breakout trade. That trade will hit once SatCon manages to clear $1.36 with high volume.
Traders should now look for long-biased trades once SatCon manages to sustain a move or close above $1.36 with volume that’s near or above 159,897 shares. At last check, SatCon has hit an intraday high of $1.27 and volume is a bit above its three-month average volume. If that breakout triggers soon, then look for SatCon to retest or possibly take out its 50-day moving average of $1.71.
American Apparelis a vertically integrated manufacturer, distributor and retailer of branded fashion basic apparel.
From a technical perspective, American Apparel is moving notably higher here with decent volume. This stock recently found buyers right off its 200-day at 82 cents and its 50-day at 87 cents with above average volume. Those buyers have now pushed the stock above two key overhead resistance levels at 95 cents and at $1. Now American Apparel is quickly moving within range of triggering another major breakout. That breakout will trigger once American Apparel takes out its April high of $1.09 with high volume.
Traders should now look for long-biased trades once American Apparel sustains a move or close over $1.09 with volume that’s near or above 208,064 shares. If that breakout hits soon, then APP will have a great chance of re-testing or taking out its next major overhead resistance levels at $1.21 to $1.30, or possibly even $1.69.
Avalon Rare Metals is a Canada-based mineral exploration and development company. Avalon’s primary focus is on rare metals and minerals, including tin, lithium, tantalum, niobium, cesium, indium, gallium, zirconium, and calcium feldspar.
From a technical perspective, Avalon Rare Metals is ripping to the upside today right off some near-term support at $1.60 with above average volume. This stock has been trading inside of a large range for the past three months, with shares moving between $1.37 and $1.80 a share. Shares of Avalon Rare Metals now look ready to challenge and potentially take out that upper-end of that range.
Traders should look for long-biased trades in Avalon Rare Metals as long as the stock is trending above its 50-day at $1.48, and then once it clears some near-term overhead resistance at $1.72 to $1.80 with high volume. Look for a sustained move or close above $1.72 to $1.80 with volume that’s near or above 402,827 shares. If Avalon Rare Metals manages to bust out of its range soon, then this stock could easily head back towards its 200-day moving average of $2.43.
Meritor is engaged in providing drivetrain mobility and braking solutions for original equipment manufacturers of trucks, trailers, and specialty vehicles, as well as the related aftermarkets in the transportation and industrial sectors.
From a technical perspective, Meritor is soaring higher here right off some near-term support at $4.50 with decent volume. This move has pushed Meritor back above its 50-day moving average of $4.84, which also happens to be a major near-term overhead resistance level.
Traders should now look for long-biased trades as long as Meritor is trending above $4.60 to $4.84 with strong upside volume flows. I would consider any upside volume day that registers near or above 1.38 million shares as bullish. If Meritor can hold that trend, then look for this stock to re-test and possibly take out its next major overhead resistance level $5.60 to $5.80, or possibly even its 200-day moving average of $6.31.
Quest Rare Minerals is an exploration-stage company, engages in the identification and discovery of rare earth deposits in Canada.
From a technical perspective, Quest Rare Minerals is moving notably higher here right off some near-term support at $1.20 with light volume. This move is quickly pushing Quest Rare Minerals within range of triggering a near-term breakout trade. That trade will hit once Quest Rare Minerals takes out some near-term overhead resistance at $1.39, and then once it clears its 50-day moving average of $1.49 with high volume.
Traders should now look for long-biased trades as long as Quest Rare Minerals is trending above $1.20 to $1.18, and then once it clears $1.39 to $1.49 with heavy volume. Look for volume off a sustained move or close above those levels that’s near or above 132,942 shares. If we get that breakout soon, then look for Quest Rare Minerals to re-test or possibly take out its next major overhead resistance levels at $1.60 to $1.81, or maybe even $1.90 to $2.20.
—By TheStreet.com Contributor Roberto Pedone
Additonal News: China’s Control on Rare Earths Supply to End: Quest CEO
Additional Views: 4 Stocks to Buy and Forget for 4 Years
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