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.
Ceres (CERE - Get Report), an agricultural biotechnology company, develops and sells energy crops to produce renewable bioenergy feedstocks in North America. This stock closed up 2.8% to 72 cents per share in Thursday's trading session.
Thursday's Range: $0.68-$0.73
52-Week Range: $0.50-$2.14
Thursday's Volume: 562,000
Three-Month Average Volume: 323,364
From a technical perspective, CERE bounced notably higher here right off its 50-day moving average of 66 cents per share with above-average volume. This stock has formed a major bottoming chart pattern over the last two months, with shares finding buying interest each time it has pulled back to right around 62 cents to 65 cents per share. Shares of CERE are now starting to bounce higher off those support levels and it's quickly moving within range of triggering a big breakout trade. That trade will hit if CERE manages to take out some near-term overhead resistance levels at 72 to 74 cents per share with high volume.
Traders should now look for long-biased trades in CERE as long as it's trending above its 50-day at 66 cents per share or above more support at 62 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 323,364 shares. If that breakout begins soon, then CERE will set up to re-test or possibly take out its next major overhead resistance levels at 82 to 90 cents per share.