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.
Mitel Networks (MITL - Get Report) provides business communications and collaboration software and services primarily to the small-to-medium sized enterprise market in the U.S., Europe, the Middle East and Africa, Canada, Caribbean and Latin America and Asia-Pacific regions. This stock closed up 3.5% to $9.70 in Tuesday's trading session.
Tuesday's Range: $9.35-$9.75
52-Week Range: $3.25-$10.86
Tuesday's Volume: 413,000
Three-Month Average Volume: 338,969
From a technical perspective, MITL spiked higher here back above its 50-day moving average of $9.65 with above-average volume. This move has pushed shares of MITL into breakout territory, since this stock took out some near-term overhead resistance at $9.52 and its 50-day at $9.65. Market players should now look for a continuation move higher in the short-term if MITL manages to take out Tuesday's intraday high of $9.75 with high volume.
Traders should now look for long-biased trades in MITL as long as it's trending above Tuesday's low of $9.35 or above more near-term support at $9 and then once it sustains a move or close above $9.75 with volume that hits near or above 338,969 shares. If that move starts soon, then MITL will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $10.86.