How To Find Low-Priced Stocks Ready To Surge
In today’s Chart of the Day, we’re going to look at a
quantified way of finding
Low-Priced Stocks Ready To Surge.
These are the stocks trading under $10/share, that made a new 10-day low but are
still in an uptrend as they are trading above their 200-day
moving average.
They are sorted in rank according to how over-extended they are vs. their 10-day moving average.
For example, the top ranked stock is trading the furthest distance from its
10-day MA on a percentage basis. Historically, these stocks on average have had
larger than normal short-term upside reversals. Please note: All stocks carry
risk and low-priced stocks usually come with even more risk. Always use caution.
SITEL Corp.
(
SWW |
Quote |
Chart |
News |
PowerRating)
1. New 10-day low.
2. 200-day moving average. Stocks trading above their 200-day MA are defined as
being in an uptrend.
3. 10-day moving average. Stocks are ranked according to how over-extended they
are vs. their 10-day MA.
In this chart, we’ve given you an example of what to look for
in Low-Priced Stocks Ready To Surge. Remember trading low-priced stocks carries
a high degree of risk, so before you enter a position always have a plan that
includes a stop-loss. Risk control is essential when trading; never buy unless
you have a plan to sell, hopefully for a profit but also possibly for a loss.
In the days to come we’ll show you more of these examples on both the long and
short side. I’ve enjoyed showing you this Chart of the Day, please feel free to
email me at editor@tradingmarkets.com
if you have any questions or comments.
Ashton Dorkins
Editor-in-Chief