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.
Ventrus Biosciences (VTUS) , a development-stage specialty pharmaceutical company, focuses on the development and commercialization of late-stage prescription drugs for gastrointestinal disorders. This stock closed up 0.98% to $4.13 in Tuesday's trading session.
Tuesday's Range: $4.02-$4.30
52-Week Range: $1.91-$4.39
Tuesday's Volume: 440,000
Three-Month Average Volume: 206,403
From a technical perspective, VTUS trended modestly higher here right above some near-term support at $4 with above-average volume. This stock has been uptrending strong for the last three months, with shares moving higher from its low of $2.47 to its recent high of $4.39. During that move, shares of VTUS have been consistently making higher lows and higher highs, which is bullish technical price action. This spike on Tuesday is now starting to push shares of VTUS within range of triggering a big breakout trade. That trade will hit if VTUS manages to take out Tuesday's high of $4.30 to its 52-week high at $4.39 with high volume.
Traders should now look for long-biased trades in VTUS as long as its trending above some near-term support levels at $4 or above $3.70 and then once it sustains a move or close above those breakout levels with volume that hits near or above 206,403 shares. If that breakout hits soon, then VTUS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $5 to $6.
Amarin (AMRN) - Get Report, a biopharmaceutical company, focuses on the development and commercialization therapeutic products for the treatment for cardiovascular diseases. This stock closed up 6.6% to $1.93 in Tuesday's trading session.
Tuesday's Range: $1.82-$1.97
52-Week Range: $1.36-$8.98
Tuesday's Volume: 4.95 million
Three-Month Average Volume: 6.42 million
From a technical perspective, AMRN spiked sharply higher here back above its 50-day moving average of $1.88 with lighter-than-average volume. This move has started to push shares of AMRN into its previous gap-down-day zone from a few weeks ago that started at $2.30. Market players should now look for a continuation move higher in the short-term if AMRN manages to take out Tuesday's high of $1.97 with high volume.
Traders should now look for long-biased trades in AMRN as long as it's trending above Tuesday's low of $1.82 or above more support at $1.70 and then once it sustains a move or close above $1.97 with volume that hits near or above 6.42 million shares. If we get that move soon, then AMRN will set up to re-fill some of its previous gap-down-day zone that started at $2.30.
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 4.1% to $1.75 in Tuesday's trading session.
Tuesday's Range: $1.64-$1.81
52-Week Range: $1.11-$2.43
Tuesday's Volume: 5.30 million
Three-Month Average Volume: 2.72 million
From a technical perspective, PPHM bounced notably higher here right around some near-term support at $1.66 with heavy upside volume. This stock has been consolidating and trending sideways for the last month, with shares moving between $1.64 on the downside and $2.05 on the upside. Shares of PPHM are now starting to trend within range of triggering a major breakout trade above the upper-end of its recent sideways trading chart pattern. That trade will hit if PPHM manages to take out Tuesday's high of $1.81 to some more near-term overhead resistance at $1.86 with high volume.
Traders should now look for long-biased trades in PPHM as long as it's trending above Tuesday's low $1.64 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.72 million shares. If that breakout hits soon, then PPHM will set up to re-test or possibly take out its next major overhead resistance levels at $2.05 to $2.06 or its 52-week high at $2.43.
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.