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.
Peregrine Pharmaceuticals (PPHM - Get Report), a biopharmaceutical company, engages in the development of monoclonal antibodies focused on the treatment and diagnosis of cancer. This stock closed up 7.3% to $1.91 in Tuesday's trading session.
Tuesday's Range: $1.80-$1.92
52-Week Range: $1.11-$2.06
Tuesday's Volume: 4.86 million
Three-Month Average Volume: 3.05 million
From a technical perspective, PPHM soared higher here right above some near-term support at $1.77 with above-average volume. This move pushed shares of PPHM into breakout territory, since the stock took out some near-term overhead resistance at $1.90. Shares of PPHM are now quickly moving within range of triggering an even bigger breakout trade. That trade will hit if PPHM manages to take out Tuesday's high of $1.92 to its 52-week high at $2.06 with high volume.