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.
Thursday's Range: $1.38-$1.50
52-Week Range: $1.38-$2.94
Thursday's Volume: 464,000
Three-Month Average Volume: 321,548
From a technical perspective, ARQL bounced sharply higher here right off its 52-week low of $1.38 with above-average volume. This stock has been downtrending badly for the last four months, with shares moving lower from its high of $2.92 to its 52-week low of $1.38. During that downtrend, shares of ARQL have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of ARQL now look ready to reverse its downtrend and experience a powerful bounce higher off depressed levels. Market players should now look for a continuation move to the upside in the short-term if ARQL manages to take out Thursday's intraday high of $1.50 with strong volume.
Traders should now look for long-biased trades in ARQL as long as it's trending above its 52-week low of $1.38 and then once it sustains a move or close above $1.50 with volume that hits near or above 321,548 shares. If that move starts soon, then ARQL will set up to re-test or possibly take out its next major overhead resistance levels at $1.60 to $1.66, or even $1.78 or its 50-day moving average of $1.84.
Eagle Pharmaceuticals (EGRX) - Get Report, a specialty pharmaceutical company, focuses on developing and commercializing injectable products primarily in the critical care and oncology areas in the U.S. This stock closed up 0.7% to $9.83 in Thursday's trading session.
Thursday's Range: $9.60-$9.94
52-Week Range: $9.16-$16.44
Thursday's Volume: 14,000
Three-Month Average Volume: 143,069
From a technical perspective, EGRX trended modestly higher here with very light volume. This stock recently formed a double bottom chart pattern at $9.25 to $9.16. Following that bottom, shares of EGRX have now started to rebound higher off those support levels and it's now moving within range of triggering a near-term breakout trade. That trade will hit if EGRX manages to take out some key near-term overhead resistance levels at $10.08 to $10.12 with high volume.
Traders should now look for long-biased trades in EGRX as long as it's trending above those double bottom support zones and then once it sustains a move or close above those breakout levels with volume that hits near or above 143,069 shares. If that breakout gets underway soon, then EGRX will set up to re-test or possibly take out its next major overhead resistance levels at $10.50. Any high-volume move above $10.50 will then give EGRX a chance for a powerful bounce higher back towards $11.50 to its 200-day moving average of $12.14.
Hansen Medical (HNSN) develops, manufactures and sells medical robotics designed for the positioning, manipulation and control of catheters and catheter-based technologies. This stock closed up 2.4% to $1.26 a share in Thursday's trading session.
Thursday's Range: $1.21-$1.31
52-Week Range: $1.10-$2.89
Thursday's Volume: 839,000
Three-Month Average Volume: 594,430
From a technical perspective, HNSN spiked notably higher here right above some near-term support at $1.20 with above-average volume. This stock has been downtrending badly for the last month and change, with shares moving lower from its high of $2.84 to its 52-week low of $1.10. During that downtrend, shares of HNSN have been consistently making lower highs and lower lows, which is bearish technical price action. That move has also pushed shares of HNSN into oversold territory, since this stock's current relative strength index reading is 18.51. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher from.
Traders should now look for long-biased trades in HNSN an long as it's trending above $1.20 or above $1.15 and then once it sustains a move or close above Thursday's high of $1.31 to some more near-term overhead resistance at $1.38 with volume that hits near or above 594,430 shares. If that move gets started soon, then HNSN will set up to re-test or possibly take out its next major overhead resistance levels at around $1.70 to $1.90.
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.