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.
DragonWave (DRWI) provides high-capacity packet microwave solutions that drive IP networks worldwide. This stock closed up 4.5% to $1.37 a share in Tuesday's trading session.
Tuesday's Range: $1.31-$1.38
52-Week Range: $1.08-$3.58
Tuesday's Volume: 139,000
Three-Month Average Volume: 252,143
From a technical perspective, DRWI spiked sharply higher here right above some near-term support at $1.28 with lighter-than-average volume. This spike higher on Tuesday is starting to push shares of DRWI within range of triggering a near-term breakout trade. That trade will hit if DRWI manages to take out its 50-day moving average of $1.40 and then once it clears more near-term overhead resistance levels at $1.44 to $1.50 with high volume.
Traders should now look for long-biased trades in DRWI as long as it's trending above some key near-term support levels at $1.28 or at $1.22 and then once it sustains a move or close above those breakout levels with volume that hits near or above 252,143 shares. If that breakout kicks off soon, then DRWI will set up to re-test or possibly take out its next major overhead resistance levels $1.69 to its 200-day moving average of $1.78.
Sequans Communications (SQNS) - Get Sequans Communications SA Report, together with its subsidiaries, designs, develops and supplies 4G LTE and WiMAX semiconductor solutions for wireless broadband applications. This stock closed up 2.3% to $1.72 in Tuesday's trading session.
Tuesday's Range: $1.70-$1.75
52-Week Range: $1.44-$3.40
Tuesday's Volume: 250,000
Three-Month Average Volume: 283,356
From a technical perspective, SQNS trended modestly higher here with decent upside volume. This stock has been downtrending badly for the last two months, with shares moving lower from its high of $3.40 to its recent low of $1.55. During that move, shares of SQNS have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of SQNS have now started to bounce off that $1.55 low and it's quickly moving within range of triggering a big breakout trade. That trade will hit if SQNS manages to take out some key near-term overhead resistance at $1.75 with high volume.
Traders should now look for long-biased trades in SQNS as long as it's trending above some key near-term support levels at $1.64 or at $1.55 and then once it sustains a move or close above $1.75 with volume that hits near or above 283,356 shares. If that breakout triggers soon, then SQNS will set up to re-test or possibly take out its next major overhead resistance levels at $2 to its 200-day moving average of $2.31.
Enservco (ENSV) - Get Enservco Corporation Report, through its subsidiaries, provides oil field services to the onshore oil and natural gas industry in the U.S. This stock closed up 7.6% to $2.40 in Tuesdays trading session.
Tuesday's Range: $2.25-$2.42
52-Week Range: $0.86-$2.75
Tuesday's Volume: 351,000
Three-Month Average Volume: 125,320
From a technical perspective, ENSV surged sharply higher here back above its 50-day moving average of $2.34 with above-average volume. This move is quickly pushing shares of ENSV within range of triggering a major breakout trade. That trade will hit if ENSV manages to take out some key near-term overhead resistance levels at $2.47 to $2.49 and then once it clears $2.70 to its 52-week high at $2.75 with high volume.
Traders should now look for long-biased trades in ENSV as long as it's trending above some key near-term support levels at $2.20 or at $2.10 and then once it sustains a move or close above those breakout levels with volume that hits near or above 125,320 shares. If that breakout triggers soon, then ENSV will set up to enter new 52-week-high territory above $2.75, which is bullish technical price action. Some possible upside targets off that breakout are $3 to $3.50, or even $4.
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.