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.
Peregrine Pharmaceuticals (PPHM) , a biopharmaceutical company, engages in the development of monoclonal antibodies focused on the treatment and diagnosis of cancer. This stock closed up 7.3% to $1.91 in Tuesday's trading session.
Tuesday's Range: $1.80-$1.92
52-Week Range: $1.11-$2.06
Tuesday's Volume: 4.86 million
Three-Month Average Volume: 3.05 million
From a technical perspective, PPHM soared higher here right above some near-term support at $1.77 with above-average volume. This move pushed shares of PPHM into breakout territory, since the stock took out some near-term overhead resistance at $1.90. Shares of PPHM are now quickly moving within range of triggering an even bigger breakout trade. That trade will hit if PPHM manages to take out Tuesday's high of $1.92 to its 52-week high at $2.06 with high volume.
Traders should now look for long-biased trades in PPHM as long as it's trending above Tuesday's low of $1.80 or above more near-term support at $1.77 and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.05 million shares. If that breakout materializes soon, then PPHM will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $2.43 to $2.78. Any high-volume move above $2.78 will then give PPHM a chance to re-fill some of its previous gap-down-day zone from 2012 that started at $5.50.
Vivus (VVUS) - Get Report, a biopharmaceutical company, engages in developing and commercializing therapies to address unmet needs in obesity, sleep apnea, diabetes and sexual health. This stock closed up 1.1% to $6.16 in Tuesday's trading session.
Tuesday's Range: $6.09-$6.34
52-Week Range: $5.63-$15.62
Tuesday's Volume: 4.31 million
Three-Month Average Volume: 2.51 million
From a technical perspective, VVUS trended modestly higher here with monster upside volume. This stock recently gapped down sharply lower from around $7 to under $6 with heavy downside volume. Shares of VVUS went on to print a new low of $5.63, but the stock has now started to rebound and re-fill some of its previous gap-down-day zone. Market players should now look for a continuation move higher in the short-term if VVUS manages to take out Tuesday's high of $6.34 with strong volume.
Traders should now look for long-biased trades in VVUS as long as its trending above $6 or above its recent low of $5.63 and then once it sustains a move or close above $6.34 with volume that hits near or above 2.51 million shares. If that move kicks off soon, then VVUS will set up to re-fill some of its previous gap-down-day zone that started near $7. Any high-volume move above $7 will then give VVUS a chance to tag its next major overhead resistance levels at $7.23 to its 50-day moving average of $7.90.
To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
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At the time of publication, author had no positions in stocks mentioned. Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.