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.
SouFun (SFUN) - Get Report operates a real estate Internet portal, and a home furnishing and an improvement Web site in the People's Republic of China. This stock closed up 5.9% to $9.40 in Wednesday's trading session.
Wednesday's Range: $8.76-$9.50
52-Week Range: $4.60-$19.94
Wednesday's Volume: 8.36 million
Three-Month Average Volume: 7.98 million
From a technical perspective, SFUN spiked sharply higher here right above some near-term support at $8.52 with above-average volume. This stock has been downtrending badly for the last three months and change, with shares moving lower from its high of $19.94 to its recent low of $8.52. During that downtrend, shares of SFUN have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of SFUN are now starting to spike higher off that $8.52 low with strong upside volume. This move could be signaling that SFUN is ready to a short-term reversal trade to the upside.
Traders should now look for long-biased trades in SFUN as long as it's trending above its recent low of $8.52 and then once it sustains a move or close above Wednesday's intraday high of $9.50 to more resistance at $10 with volume that hits near or above 7.98 million shares. If that breakout hits soon, then SFUN will set up to re-test or possibly take out its next major overhead resistance levels at $11 to its 50-day moving average of $11.87, or even $13.
EveryWare Global (EVRY) provides tabletop and food preparation products for the consumer, foodservice and specialty markets. This stock closed up 3% to $1.35 in Wednesday's trading session.
Wednesday's Range: $1.33-$1.39
52-Week Range: $0.67-$13.74
Wednesday's Volume: 144,000
Three-Month Average Volume: 264,980
From a technical perspective, EVRY bounced notably higher here right above some near-term support at $1.25 with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $1.26 to $1.25. Following that bottom, shares of EVRY have now started to spike higher and move within range of triggering a major breakout trade. That trade will hit if EVRY manages to take out some key near-term overhead resistance levels at $1.45 to $1.60 with high volume.
Traders should now look for long-biased trades in EVRY as long as it's trending above those double bottom support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 264,980 shares. If that breakout gets underway soon, then EVRY will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $2.08 to $2.44.
Imris (IMRS) designs, manufactures and sells image-guided therapy solutions that enable surgeons to obtain information and make decisions during the course of procedures. This stock closed up 3.8% to $1.07 in Wednesdays trading session.
Wednesday's Range: $1.02-$1.10
52-Week Range: $0.79-$3.40
Wednesday's Volume: 287,000
Three-Month Average Volume: 268,972
From a technical perspective, IMRS bounced sharply higher here right off some near-term support at $1 with above-average volume. This stock has been uptrending a bit for the last few weeks, with shares moving higher from its low of 79 cents per share to its intraday high of $1.10. During that uptrend, shares of IMRS have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of IMRS within range of triggering a big breakout trade. That trade will hit if IMRS manages to take out Wednesday's intraday high of $1.10 to its 50-day moving average of $1.17 and then once it clears more resistance at $1.20 with high volume.
Traders should now look for long-biased trades in IMRS as long as it's trending above some key near-term support at $1 and then once it sustains a move or close above those breakout levels with volume that hits near or above 268,972 shares. If that breakout materializes soon, then IMRS will set up to re-test or possibly take out its next major overhead resistance levels at $1.33 to $1.52, or even its 200-day moving average of $1.60.
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.