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.
Ocean Power Technologies (OPTT) - Get Report engages in the development and commercialization of proprietary systems that generate electricity by harnessing the renewable energy of ocean waves primarily in the U.S., Europe, Asia and Australia. This stock closed up 5.9% to $2.86 in Tuesday's trading session.
Tuesday's Range: $2.68-$3.03
52-Week Range: $1.47-$7.01
Tuesday's Volume: 832,367
Three-Month Average Volume: 2.47 million
From a technical perspective, OPTT bounced sharply higher here right above some near-term support at $2.55 and above its 200-day moving average of $2.39 with lighter-than-average volume. This stock has been downtrending badly for the last two months, with shares sliding lower from its high of $7.01 to its recent low of $2.55. During that downtrend, shares of OPTT have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of OPTT might be setting up here to reverse its recent downtrend and spike higher in the short-term.
Traders should now look for long-biased trades in OPTT as long as it's trending above some near-term support at $2.55 or above its 200-day at $2.39 and then once it sustains a move or close above Tuesday's high at $3.03 volume that hits near or above 2.47 million shares. If we get that move soon, then OPTT will set up to re-test or possibly take out its next major overhead resistance levels at its gap-down-day high from April that sits right above $3.20. Any high-volume move that level will then give OPTT a chance to re-fill some of its previous gap-down-day zone that started near $4.30.
QuickLogic (QUIK) - Get Report, a fabless semiconductor company, designs, markets and supports low-power customizable semiconductor solutions for tablets, smartphones, wearables and mobile enterprise markets. This stock closed up 2.3% to $5.29 in Tuesday's trading session.
Tuesday's Range: $5.08-$5.35
52-Week Range: $2.11-$5.67
Tuesday's Volume: 472,000
Three-Month Average Volume: 776,544
From a technical perspective, QUIK spiked notably higher here right off its 50-day moving average of $5.06 with lighter-than-average volume. This stock has been trending sideways and consolidating for the last three months, with shares moving between $4.50 on the downside and $5.67 on the upside. Shares of QUIK are starting to move within range of triggering a major breakout trade above the upper-end of its recent sideways trading chart pattern. That trade will hit if QUIK manages to take out Tuesday's high of $5.35 to its 52-week high at $5.67 with high volume.
Traders should now look for long-biased trades in QUIK as long as it's trending above its 50-day at $5.06 or above more near-term support at $4.70 and then once it sustains a move or close above those breakout levels with volume that hits near or above 776,544 shares. If that breakout starts soon, then QUIK will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $6.50 to $7, or even $7.50.
Vivus (VVUS) - Get Report, a biopharmaceutical company, develops and commercializes therapies to address unmet needs in obesity, sleep apnea, diabetes and sexual health in the U.S. and the European Union. This stock closed up 3.3% to $5.30 in Tuesdays trading session.
Tuesday's Range: $5.17-$5.38
52-Week Range: $4.71-$15.62
Tuesday's Volume: 2.71 million
Three-Month Average Volume: 3.46 million
From a technical perspective, VVUS spiked notably higher here right above some near-term support at $5 with lighter-than-average volume. This spike on Tuesday is quickly pushing shares of VVUS within range of triggering a big breakout trade. That trade will hit if VVUS manages to take out Tuesday's high of $5.38 to some more near-term overhead resistance at $5.46 with high volume.
Traders should now look for long-biased trades in VVUS as long as it's trending above $5 or above its 52-week low at $4.71 and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.46 million shares. If that breakout triggers soon, then VVUS will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $5.93 to $6.28. Any high-volume move above $6.28 will then give VVUS a chance to tag $7 to $7.20.
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.