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.
Himax Technologies (HIMX - Get Report), a fabless semiconductor company, provides display imaging processing technologies to consumer electronics worldwide. This stock closed up 0.48% to $6.24 in Thursday's trading session.
Thursday's Range: $5.95-$6.37
52-Week Range: $5.10-$16.15
Thursday's Volume: 4.32 million
Three-Month Average Volume: 6.06 million
From a technical perspective, HIMX bounced modestly higher here right above some near-term support at $5.84 with lighter-than-average volume. This stock has formed a major bottoming chart pattern over the last month, with shares finding buyers each time the stock has dipped lower to around $5.65 to $5.84. Shares of HIMX are now starting to bounce off those support levels and quickly move within range of triggering a major breakout trade. That trade will hit if HIMX manages to take out its 50-day moving average of $6.69 and then once it clears more key overhead resistance levels at $6.81 to $6.89 with high volume.
Traders should now look for long-biased trades in HIMX as long as it's trending above some key near-term support levels at $5.84 or at $5.65 and then once it sustains a move or close above those breakout levels with volume that hits near or above 6.06 million shares. If that breakout begins soon, then HIMX will set up to re-test or possibly take out its next major overhead resistance levels at $7.71 to $8, or even $8.77 to $9.05.