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.
Cerus (CERS - Get Report), together with its subsidiary, Cerus Europe B.V., operates as a biomedical products company in Europe, the Commonwealth of Independent States and the Middle East. This stock closed up 4.9% to $4.02 a share in Thursday's trading session.
Thursday's Range: $3.70-$4.04
52-Week Range: $3.66-$8.00
Thursday's Volume: 926,000
Three-Month Average Volume: 759,152
From a technical perspective, CERS bounced sharply higher here right above its recent 52-week low of $3.66 with strong upside volume flows. This bounce is coming off the lower-end of this stock's range, which has seen shares move between $3.66 on the downside and $4.75 on the upside over the last two months and change. Market players should now look for a continuation move to the upside in the short-term if CERS manages to take out its 50-day moving average of $4.11 with strong volume.
Traders should now look for long-biased trades in CERS as long as it's trending above its 52-week low of $3.66 and then once it sustains a move or close above its 50-day at $4.11 with volume that hits near or above 759,152 shares. If that move gets underway soon, then CERS will set up to re-test or possibly take out its next major overhead resistance levels at $4.36 to $4.50, or even $4.75 to $4.85.