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.
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With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.
Net 1 Ueps Technologies
Net 1 Ueps Technologies (UEPS - Get Report) provides payment solutions and transaction processing services for various industries in South Africa, Korea, Europe and internationally. This stock closed up 4% to $9.88 in Tuesday's trading session.
Tuesday's Range: $9.52-$9.92
52-Week Range: $5.38-$13.00
Thursday's Volume: 140,000
Three-Month Average Volume: 179,776
From a technical perspective, UEPS trended sharply higher here right off $9.50 with lighter-than-average volume. This move is quickly pushing shares of UEPS within range of triggering a major breakout trade. That trade will hit if UEPS manages to take out Tuesday's high of $9.92 to some more near-term overhead resistance at $10.19 with high volume.
Traders should now look for long-biased trades in UEPS as long as it's trending above $9.50 or above its 200-day at $9.07 and then once it sustains a move or close above those breakout levels with volume that hits near or above 179,776 shares. If that breakout hits soon, then UEPS will set up to re-fill some of its previous gap-down-day zone from last November that started just above $11.50.