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.
Walter Energy (WLT) produces and exports metallurgical coal for the steel industry. This stock closed up 4.7% to $8.35 in Tuesday's trading session.
Tuesday's Range: $8.02-$8.70
52-Week Range: $7.07-$26.00
Tuesday's Volume: 6.13 million
Three-Month Average Volume: 6.86 million
From a technical perspective, WLT spiked higher here right above some near-term support at $7.87 with decent upside volume. This stock has been uptrending a bit over the last few weeks, with shares moving higher from its low of $7.07 to its recent high of $8.65. During that move, shares of WLT have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if WLT manages to take out Tuesday's high of $8.70 with strong volume.
Traders should now look for long-biased trades in WLT as long as it's trending above that $7.87 support level and then once it sustains a move or close above $8.70 with volume that hits near or above 6.86 million shares. If that move gets underway soon, then WLT will set up to re-fill some of its previous gap-down-day zone from March that started near $9.50. If that gap gets filled with strong upside volume flows, then WLT could easily tag $11.
Vringo (VRNG) , together with its subsidiaries, develops, acquires, licenses, protects and monetizes intellectual property worldwide. This stock closed up 3.9% to $3.92 in Tuesday's trading session.
Tuesday's Range: $3.75-$3.96
52-Week Range: $2.61-$5.45
Tuesday's Volume: 1.82 million
Three-Month Average Volume: 3.26 million
From a technical perspective, VRNG jumped higher here right off some near-term support at $3.70 with lighter-than-average volume. This spike briefly pushed shares of VRNG back above its 50-day moving average of $3.93, before the stock closed just below that level at $3.92. Market players should now look for a continuation move higher in the short-term if VRNG manages to take out Tuesday's high of $3.96 and then once it clears more key near-term overhead resistance at $4.20 with high volume.
Traders should now look for long-biased trades in VRNG as long as it's trending above some near-term support levels at $3.70 or at $3.40 and then once it sustains a move or close above $3.96 to $4.20 with volume that hits near or above 3.26 million shares. If that move materializes soon, then VRNG will set up to re-test or possibly take out its next major overhead resistance levels at $4.49 to $4.80.
Transportadora de Gas Del Sur
Tuesday's Range: $2.37-$2.49
52-Week Range: $1.60-$2.93
Tuesday's Volume: 301,000
Three-Month Average Volume: 151,871
From a technical perspective, TGS spiked higher here right above some near-term support at $2.30 with above-average volume. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low $1.86 to its recent high of $2.53. During that uptrend, shares of TGS have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TGS within range of triggering a near-term breakout trade. That trade will hit if TGS manages to take out some key resistance levels at $2.53 to $2.57 with strong volume.
Traders should now look for long-biased trades in TGS as long as its trending above support at $2.30 or at $2.20 and then once it sustains a move or close above those breakout levels with volume that hits near or above 151,871 shares. If that breakout hits soon, then TGS will set up to re-test or possibly take out its 52-week high at $2.93.
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.