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.
TearLab (TEAR) operates as an ophthalmic device company in the U.S. This stock closed up 10.9% to $4.37 in Tuesday's trading session.
Tuesday's Range: $3.96-$4.38
52-Week Range: $3.80-$15.18
Tuesday's Volume: 751,000
Three-Month Average Volume: 427,577
From a technical perspective, TEAR exploded higher here right above its recent 52-week low of $3.80 with above-average volume. This stock has been downtrending badly for the last two months and change, with shares moving lower from its high of $8.28 to its low of $3.80. During that move, shares of TEAR have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of TEAR are now starting to spike higher off oversold levels and it's starting to enter breakout territory above some near-term overhead resistance at $4.36. Market players should now look for a continuation move to the upside in the short-term if TEAR manages to clear Tuesday's high of $4.38 to $4.50 with high volume.
Traders should now look for long-biased trades in TEAR as long as it's trending above $4 and then once it sustains a move or close above $4.38 to $4.50 with volume that hits near or above 427,577 shares. If that move gets started soon, then TEAR will set up to re-test or possibly take out its next major overhead resistance levels at $5 to $5.36, or even its 50-day moving average of $5.99.
Dehaier Medical Systems
Dehaier Medical Systems (DHRM) , through its subsidiaries, develops and distributes medical devices and sleep respiratory and oxygen therapy products in the People's Republic of China. This stock closed up 4.1% to $4.98 in Tuesday's trading session.
Tuesday's Range: $4.80-$5.00
52-Week Range: $1.81-$12.89
Tuesday's Volume: 158,000
Three-Month Average Volume: 350,946
From a technical perspective, DHRM spiked notably higher here right off its 200-day moving average of $4.77 with lighter-than-average volume. This stock has been downtrending badly for the last three months, with shares sliding lower from its high of $12.89 to its recent low of $4.65. During that move, shares of DHRM have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of DHRM are now finding support off its 200-day and this stock might be setting up for a near-term trend reversal.
Traders should now look for long-biased trades in DHRM as long as its trending above its 200-day at $4.77 or above more near-term support at $4.65 and then once it sustains a move or close above Tuesday's intraday high of $5 with volume that hits near or above 350,946 shares. If that move kicks off soon, then DHRM will set up to re-test or possibly take out its next major overhead resistance levels at $6 to $7, or even its 50-day moving average of $7.32.
Millennial Media (MM) provides mobile advertising solutions to advertisers and developers in the U.S. and internationally. This stock closed up 3.2% to $3.55 in Tuesdays trading session.
Tuesday's Range: $3.40-$3.68
52-Week Range: $2.90-$10.48
Tuesday's Volume: 3.33 million
Three-Month Average Volume: 2.29 million
From a technical perspective, MM jumped higher notably here and broke out above its previous gap-down-day high of $3.60 with strong upside volume. This stock recently gapped down sharply from over $5.50 to its low of $2.90 with heavy downside volume. Following that move, shares of MM have now started to rebound off that $2.90 low and it's breaking out back into that gap with strong volume. Market players should now look for a continuation move to the upside in the near-term if MM manages to clear Tuesday's high of $3.68 with high volume.
Traders should now look for long-biased trades in MM as long as it's trending above Tuesday's low of $3.40 or above $3.25 and then once it sustains a move or close above $3.68 with volume that hits near or above 2.29 million shares. If that move gets started soon, then MM will set up to re-fill some more of that previous gap-down-day zone 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.