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.
Zalicus (ZLCS) , a biopharmaceutical company, engages in the discovery and development of novel treatments for patients suffering from pain. This stock closed up 12.9% to $1.92 in Tuesday's trading session.
Tuesday's Range: $1.71-$1.96
52-Week Range: $0.88-$8.28
Tuesday's Volume: 3.56 million
Three-Month Average Volume: 2 million
From a technical perspective, ZLCS ripped higher here and broke out above some near-term overhead resistance at $1.78 with heavy upside volume. This move is quickly pushing shares of ZLCS within range of triggering another big breakout trade. That trade will hit if ZLCS manages to take out Tuesday's high of $1.96 to some more key overhead resistance at $2 with high volume.
Traders should now look for long-biased trades in ZLCS as long as it's trending above Tuesday's low of $1.71 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2 million shares. If that breakout hits soon, then ZLCS will set up to re-fill some of its previous gap-down-day zone from last November that started at $4.83. Some possible upside targets if ZLCS gets into that gap with volume are $2.50 to $3.
Zion Oil & Gas
Tuesday's Range: $1.85-$1.94
52-Week Range: $0.81-$2.99
Tuesday's Volume: 60,000
Three-Month Average Volume: 82,944
From a technical perspective, ZN spiked modestly higher here right above some near-term support levels at $1.80 and its 50-day moving average at $1.75 with lighter-than-average volume. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $1.37 to its recent high of $1.96. During that uptrend, shares of ZN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ZN within range of triggering a near-term breakout trade. That trade will hit if ZN manages to take out some near-term overhead resistance levels at $1.96 to $1.99 with high volume.
Traders should now look for long-biased trades in ZN as long as it's trending above Tuesdays low of $1.84 or above its 50-day at $1.75 and then once it sustains a move or close above those breakout levels with volume that hits near or above 82,944 shares. If that breakout hits soon, then ZN will set up to re-test or possibly take out its next major overhead resistance levels at $2.12 to $2.20, or even $2.45.
Atossa Genetics (ATOS) - Get Report operates as a healthcare company that focuses on the development and marketing of cellular and molecular diagnostic risk assessment products for breast cancer in the U.S. This stock closed up 4.4% to $2.56 in Tuesday's trading session.
Tuesday's Range: $2.43-$2.58
52-Week Range: $1.74-$12.40
Thursday's Volume: 241,000
Three-Month Average Volume: 247,514
From a technical perspective, ATOS jumped notably higher here right above its 50-day moving average of $2.37 with decent upside volume. This move is quickly pushing shares of ATOS within range of triggering a near-term breakout trade. That trade will hit if ATOS manages to take out Tuesday's high of $2.58 to some more near-term overhead resistance at $2.66 with high volume.
Traders should now look for long-biased trades in ATOS as long as it's trending above its 50-day at $2.37 or above more key near-term support at $2.15 and then once it sustains a move or close above those breakout levels with volume that hits near or above 247,514 shares. If that breakout hits soon, then ATOS will set up to re-test or possibly take out its next major overhead resistance levels at $2.95 to $3.10. Any high-volume move above those levels will then give ATOS a chance to re-fill some of its previous gap-down-day zone from October that started near $5.50.
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.