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.
With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.
Vical (VICL - Get Report) is engaged in the research and development of biopharmaceutical products based on its DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases. This stock closed up 2.4% to $1.25 a share in Thursday's trading session.
Thursday's Range: $1.22-$1.28
52-Week Range: $1.01-$4.51
Thursday's Volume: 1.27 million
Three-Month Average Volume: 1.04 million
From a technical perspective, VICL spiked modestly higher here back above its 50-day moving average of $1.24 with above-average volume. This spike higher on Thursday is starting to push shares of VICL within range of triggering a big breakout trade. That trade will hit if VICL manages to take out some near-term overhead resistance levels at $1.30 to $1.36 with strong upside volume. Keep in mind that taking out those levels will also push VICL back above its 200-day moving average of $1.29.
Traders should now look for long-biased trades in VICL as long as it's trending above some near-term support levels at $1.20 or at $1.16 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.04 million shares. If that breakout starts soon, then VICL will set up to re-test or possibly take out its next major overhead resistance levels at $1.50 to $1.60, or even $1.66 to $1.75.