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.
U.S. Energy (USEG) - Get Report, an independent energy company, focuses on the acquisition and development of oil and gas producing properties and other mineral properties in the continental U.S. This stock closed up 4.2% to $4.47 a share in Thursday's trading session.
Thursday's Range: $4.28-$4.52
52-Week Range: $1.70-$5.08
Thursday's Volume: 311,000
Three-Month Average Volume: 221,011
From a technical perspective, USEG spiked sharply higher here right off its 50-day moving average of $4.29 with strong upside volume. This stock recently pulled back off its 52-week high of $5.08 to just below its 50-day and it has now started to rebound and spike higher. Market players should watch for a continuation move higher in the short-term if USEG manages to take out Thursday's high of $4.52 with strong upside volume flows.
Traders should now look for long-biased trades in USEG as long as it's trending above its 50-day moving average of $4.29 or above its recent low of $4.03 and then once it sustains a move or close above those $4.52 with volume that hits near or above 221,011 shares. If that move starts soon, then USEG will set up to re-test or possibly take out its next major overhead resistance levels at $5 to its 52-week high at $5.08. Any high-volume move above those levels will then give USEG a chance to tag $5.50 to $6.
Pernix Therapeutics (PTX) - Get Report, a specialty pharmaceutical company, develops, manufactures, markets and sells branded and generic pharmaceutical products. This stock closed up 5.6% to $5.28 a share in Thursday's trading session.
Thursday's Range: $4.86-$5.63
52-Week Range: $1.68-$6.02
Thursday's Volume: 428,000
Three-Month Average Volume: 515,156
From a technical perspective, PTX spiked sharply higher here right above its 50-day moving average of $4.31 with decent upside volume. This move briefly pushed shares of PTX into breakout territory, since this stock flirted with some near-term overhead resistance at $5.58. Shares of PTX hit an intraday high of $5.64, before closing just below that level at $5.28. This spike higher on Thursday is starting to push shares of PTX within range of triggering a major breakout trade. That trade will hit if PTX manages to take out some key near-term overhead resistance levels at $5.70 to its 52-week high at $6.02 with high volume.
Traders should now look for long-biased trades in PTX as long as it's trending above some near-term support at $4.75 or above its 50-day at $4.31 and then once it sustains a move or close above those breakout levels with volume that hits near or above 515,156 shares. If that breakout kicks off soon, then PTX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $7 to around $7.50.
Body Central (BODY) - Get Report operates as a specialty retailer of young women's apparel and accessories in the South, Southwest, Mid-Atlantic and Midwest regions of the U.S. This stock closed up 9.7% to $1.13 a share in Thursday's trading session.
Thursday's Range: $1.03-$1.16
52-Week Range: $0.86-$13.39
Thursday's Volume: 835,000
Three-Month Average Volume: 709,124
From a technical perspective, BODY ripped sharply higher here right above some near-term support at $1 with above-average volume. This spike higher on Thursday pushed shares of BODY into breakout territory, since the stock took out and closed above some near-term overhead resistance at $1.08. Market players should now look for a continuation move to the upside in the short-term if BODY can manage to take out Thursday's high of $1.16 to more near-term overhead resistance at $1.20 with strong upside volume flows.
Traders should now look for long-biased trades in BODY as long as it's trending above Thursday's low of $1.03 or above more near-term support levels at $1 to 97 cents per share and then once it sustains a move or close above $1.16 to $1.20 with volume that hits near or above 709,124 shares. If that move gets underway soon, then BODY will set up to re-test or possibly take out its next major overhead resistance levels at $1.26 to $1.31. Any high-volume move above those levels will then give BODY a chance to re-fill some of its previous gap-down-day zone from March that stared just above $1.80. Shares of BODY could easily explode into that gap if we get a volume push soon, so targets above $1.80 would be $2 to $2.20.
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.