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: 3 Stocks Under $10 to Trade for Breakouts
With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.
Ocean Power Technologies (OPTT - Get Report) engages in the development and commercialization of proprietary systems that generate electricity by harnessing the renewable energy of ocean waves primarily in the U.S., Europe, Asia and Australia. This stock closed up 5.9% to $2.86 in Tuesday's trading session.
Tuesday's Range: $2.68-$3.03
52-Week Range: $1.47-$7.01
Tuesday's Volume: 832,367
Three-Month Average Volume: 2.47 million
From a technical perspective, OPTT bounced sharply higher here right above some near-term support at $2.55 and above its 200-day moving average of $2.39 with lighter-than-average volume. This stock has been downtrending badly for the last two months, with shares sliding lower from its high of $7.01 to its recent low of $2.55. During that downtrend, shares of OPTT have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of OPTT might be setting up here to reverse its recent downtrend and spike higher in the short-term.
Traders should now look for long-biased trades in OPTT as long as it's trending above some near-term support at $2.55 or above its 200-day at $2.39 and then once it sustains a move or close above Tuesday's high at $3.03 volume that hits near or above 2.47 million shares. If we get that move soon, then OPTT will set up to re-test or possibly take out its next major overhead resistance levels at its gap-down-day high from April that sits right above $3.20. Any high-volume move that level will then give OPTT a chance to re-fill some of its previous gap-down-day zone that started near $4.30.