The following stocks gapped up significantly at the open on April 4: Direxion Daily Financial Bear 3X Shares, Embraer SA, ProShares UltraShort DJ-UBS Crude Oil, Internet Initiative Japan Inc, and Charm Communications Inc. These stocks may be up because of positive overnight news, overall market bullishness, or increased speculation. Oftentimes stocks will close the gap, meaning they will retrace to the last day's high. Thus, gap ups are often good selling opportunities but in some cases, watch for the stock to continue higher.
Shares of Direxion Daily Financial Bear 3X Shares (FAZ) opened higher by 3.18% and are currently trading at $21.01. In the past year, the shares have traded as low as $19.92 and as high as $81.50. On average, 16872750 shares of FAZ exchange hands on a given day and today's volume is recorded at 1250389. The shares are currently trading below the 50-day and 200-day moving averages which indicates that the shares have been experiencing downward momentum. The stock may bounce back to test the 200-day moving average. Thus, you may want to pay close attention for a move up to the $24.75 area but be careful because the stock may face selling pressure at this level.
Shares of Embraer SA (ERJ) opened higher by 2.83% and are currently trading at $33.52. In the past year, the shares have traded as low as $20.98 and as high as $34.75. On average, 1065310 shares of ERJ exchange hands on a given day and today's volume is recorded at 612883. The shares are currently trading above the 50-day moving average which indicates that the shares have been experiencing strong upward momentum as the 50 DMA is above the 200 DMA. The stock may come back down to test the 50-day moving average, so look for a move back to the $29.86 area where the stock will likely see buying pressure.
Shares of ProShares UltraShort DJ-UBS Crude Oil (SCO) opened higher by 2.7% and are currently trading at $35.21. In the past year, the shares have traded as low as $30.74 and as high as $71.36. On average, 1534670 shares of SCO exchange hands on a given day and today's volume is recorded at 99471. The shares are currently trading below the 200-day moving average but above the 50-day moving average. The stock may be range bound between these two levels where the 200-day moving average of $44.92 represents resistance and the 50-day moving average of $34.93 would be an area of support.
Shares of Internet Initiative Japan Inc (IIJI) opened higher by 2.45% and are currently trading at $8.78. In the past year, the shares have traded as low as $6.67 and as high as $11.78. On average, 12590 shares of IIJI exchange hands on a given day and today's volume is recorded at 597. The shares are currently trading below the 200-day moving average but above the 50-day moving average. The stock may be range bound between these two levels where the 200-day moving average of $9.24 represents resistance and the 50-day moving average of $7.91 would be an area of support.
Shares of Charm Communications Inc (CHRM) opened higher by 2.27% and are currently trading at $9.01. In the past year, the shares have traded as low as $5.97 and as high as $12.26. On average, 9870 shares of CHRM exchange hands on a given day and today's volume is recorded at 300. The shares are currently trading below the 200-day moving average but above the 50-day moving average. The stock may be range bound between these two levels where the 200-day moving average of $9.41 represents resistance and the 50-day moving average of $8.74 would be an area of support.
