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.
NeuroMetrix (NURO) - Get NeuroMetrix, Inc. Report , a medical device company, develops and markets products for the detection, diagnosis and monitoring of peripheral nerve and spinal cord disorders, such as those associated with carpal tunnel syndrome, lumbosacral disc disease, spinal stenosis and diabetes. This stock closed up 1.7% to $1.78 in Tuesday's trading session.
Tuesday's Range: $1.70-$1.79
52-Week Range: $1.47-$4.25
Tuesday's Volume: 89,000
Three-Month Average Volume: 374,785
From a technical perspective, NURO trended modestly higher here back above its 50-day moving average of $1.73 with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $1.60 to $1.57. Following that bottom, shares of NURO have now started to uptrend and move within range of triggering a near-term breakout trade. That trade will hit if NURO manages to take out some near-term overhead resistance levels at $1.80 to $1.85 and then above more resistance at $1.95 to $2 with high volume.
Traders should now look for long-biased trades in NURO as long as it's trending above some near-term support levels at $1.60 or at $1.57 and then once it sustains a move or close above those breakout levels with volume that hits near or above 374,785 shares. If that breakout starts soon, then NURO will set up to re-test or possibly take out its next major overhead resistance levels at $2.08 to its 200-day moving average of $2.12. Any high-volume move above $2.12 will then give NURO a chance to tag $2.30 to $2.40.
Tuesday's Range: $6.93-$7.32
52-Week Range: $1.50-$8.12
Tuesday's Volume: 283,000
Three-Month Average Volume: 459,109
From a technical perspective, RDNT bounced notably higher here right above its 50-day moving average of $6.72 with lighter-than-average volume. This spike to the upside on Tuesday is starting to push shares of RDNT within range of triggering a near-term breakout trade above some key overhead resistance levels. That trade will hit if RDNT manages to take out some near-term overhead resistance levels at $7.67 to its 52-week high at $8.12 with high volume.
Traders should now look for long-biased trades in RDNT as long as it’s trending above its 50-day at $6.72 or above more near-term support at $6.36 and then once it sustains a move or close above those breakout levels with volume that hits near or above 459,109 shares. If that breakout hits soon, then RDNT will set up to enter new 52-week-high territory above $8.12, which is bullish technical price action. Some possible upside targets off that breakout are $9 to $10.
First Security Group
First Security Group (FSGI) operates as a bank holding company for FSGBank, which provides various banking products and services to various communities in Tennessee and Georgia. This stock closed up 5.6% to $2.06 in Tuesday's trading session.
Tuesday's Range: $1.95-$2.06
52-Week Range: $1.73-$2.64
Tuesday's Volume: 186,000
Three-Month Average Volume: 128,806
From a technical perspective, FSGI spiked sharply higher here right above some near-term support at $1.94 with above-average volume. This spike higher on Tuesday also pushed shares of FSGI back above both its 50-day moving average at $1.99 and its 200-day moving average of $2.04. That move is starting to push shares of FSGI within range of triggering a near-term breakout trade. That trade will hit if FSGI manages to take out Tuesday's intraday high of $2.06 to some more near-term overhead resistance at $2.10 with high volume.
Traders should now look for long-biased trades in FSGI as long as it's trending above some key near-term support levels at $1.94 or at $1.90 and then once it sustains a move or close above those breakout levels with volume that hits near or above 128,806 shares. If that breakout gets underway soon, then FSGI will set up to re-test or possibly take out its next major overhead resistance levels at $2.20 to $2.23, or even its 52-week high at $2.64.
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.