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.
Tuesday's Range: $4.40-$4.78
52-Week Range: $3.42-$9.57
Tuesday's Volume: 1.62 million
Three-Month Average Volume: 1.83 million
From a technical perspective, XOMA jumped higher here right above its 50-day moving average of $4.29 with decent upside volume. This jump higher on Tuesday is starting to push shares of XOMA within range of triggering a near-term breakout trade. That trade will hit if XOMA manages to take out Tuesday's intraday high of $4.78 to some more key overhead resistance levels at $5 to $5.03 with high volume.
Traders should now look for long-biased trades in XOMA as long as it's trending above its 50-day at $4.29 or above $4 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.83 million shares. If that breakout kicks off soon, then XOMA will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $5.46 to $5.54. Any high-volume move above those levels will then give XOMA a chance to tag $6 to $6.45.