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.
Atossa Genetics (ATOS) - Get Atossa Genetics Inc. Report operates as a health care 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 2.8% to $2.34 in Tuesday's trading session.
Tuesday's Range: $2.29-$2.42
52-Week Range: $1.74-$12.40
Thursday's Volume: 782,000
Three-Month Average Volume: 558,952
From a technical perspective, ATOS spiked notably higher here right above some near-term support at $2.25 with above-average volume. This move briefly pushed shares of ATOS back above its 50-day moving average of $2.39, before the stock closed just below that level at $2.35. Market players should now look for a continuation move higher in the short-term if ATOS manages to take out Tuesday's high of $2.42 to some more near-term overhead resistance at $2.45 with high volume.
Traders should now look for long-biased trades in ATOS as long as it's trending above support at $2.25 and then once it sustains a move or close above $2.42 to $2.45 with volume that hits near or above 558,952 shares. If that move begins soon, then ATOS will set up to re-test or possibly take out its next major overhead resistance levels at $2.60 to $2.70. 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 January that started at $3.28.
Kips Bay Medical (KIPS) , a medical device company, manufactures and commercializes its external saphenous vein support technology for use in coronary artery bypass grafting surgery. This stock closed up 5.4% to 77 cents per share in Tuesday's trading session.
Tuesday's Range: $0.73-$0.78
52-Week Range: $0.62-$1.74
Tuesdays Volume: 753,000
Three-Month Average Volume: 170,606
From a technical perspective, KIPS surged higher here right off its 50-day moving average of 74 cents per share with heavy upside volume. This move pushed shares of KIPS into breakout territory, since the stock took out some near-term overhead resistance at 76 cents per share. This move also pushed shares of KIPS into its previous gap-down-day zone from January. Traders should now look for a continuation move higher in the short-term if KIPS can manage to take out Tuesday's high of 78 cents with strong volume.
Traders should now look for long-biased trades in KIPS as long as it's trending above Tuesday's low of 73 cents per share or above 72 cents per share and then once it sustains a move or close above 78 cents per share with volume that hits near or above 170,606 shares. If we get that move soon, then KIPS will set up to re-fill some more of its previous gap-down-day zone that started near 90 cents per share.
Affymetrix (AFFX) provides life science tools and molecular diagnostic products that enable parallel analysis of biological systems at the gene, protein and cell level primarily in the U.S., Europe, Latin America, and Asia. This stock closed up 0.81% to $7.47 in Tuesday's trading session.
Tuesday's Range: $7.30-$7.50
52-Week Range: $3.22-$9.80
Tuesday's Volume: 879,000
Three-Month Average Volume: 1.28 million
From a technical perspective, AFFX spiked modestly higher here right above some near-term support at $7.18 with lighter-than-average volume. This stock has been uptrending a bit over the last few weeks, with shares moving higher from its low of $6.72 to its recent high of $7.58. During that move, shares of AFFX have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AFFX within range of triggering a major breakout trade. That trade will hit if AFFX manages to take out Tuesday's high of $7.50 to some more near-term overhead resistance at $7.58 with high volume.
Traders should now look for long-biased trades in AFFX as long as it's trending above some key near-term support levels at $7.18 or at $7 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.28 million shares. If that breakout hits soon, then AFFX will set up to re-test or possibly take out its next major overhead resistance levels at $8.50 to $9.
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.