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.
Must Read: 5 Stocks Under $10 Setting Up to Soar
With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.
WidePoint (WYY - Get Report) provides technology-based products and solutions to government sector and commercial markets primarily in the U.S. This stock closed up 4.1% to $1.51 in Thursday's trading session.
Thursday's Range: $1.44-$1.54
52-Week Range: $0.45-$1.95
Thursday's Volume: 1.89 million
Three-Month Average Volume: 1.27 million
From a technical perspective, WYY spiked notably higher here right above some near-term support at $1.40 with strong upside volume. This spike is starting to push shares of WYY within range of triggering a big breakout trade. That trade will hit if WYY manages to take out its 50-day moving average of $1.56 to some more key overhead resistance at $1.67 with strong volume.
Traders should now look for long-biased trades in WYY as long as it's trending above key near-term support levels at $1.40 or at $1.35 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.27 million shares. If that breakout takes hold soon, then WYY will set up to re-test or possibly take out its next major overhead resistance levels at $1.80 to its 52-week high at $1.95. Any high-volume move above $1.95 will then give WYY a chance to trend north of $2.