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.
Can-Fite BioPharma (CANF) - Get Report, a biotechnology company, develops drugs for the treatment of cancer and autoimmune inflammatory diseases. This stock closed up 6% to $5.75 in Tuesday's trading session.
Tuesday's Range: $5.65-$5.93
52-Week Range: $3.30-$9.46
Tuesday's Volume: 40,000
Three-Month Average Volume: 62,860
From a technical perspective, CANF gapped notably higher here with lighter-than-average volume. This spike is starting to push shares of CANF within range of triggering a near-term breakout trade. That trade will hit if CANF manages to take out Tuesday's high of $5.93 to its 50-day moving average of $6.13 with high volume.
Traders should now look for long-biased trades in CANF as long as its trending above its 200-day at $5.11 or above more support at $5.03 and then once it sustains a move or close above those breakout levels with volume that hits near or above 62,860 shares. If that breakout hits soon, then CANF will set up to re-test or possibly take out its next major overhead resistance level at $6.75. Any high-volume move above that level will then give CANF a chance to re-fill some of its previous gap-down-day zone from last December that started at $8.75.
China Ming Yang Wind Power Group
China Ming Yang Wind Power Group (MY) engages in designing, manufacturing, selling, leasing and servicing megawatt-class, grid-connected and horizontal-axis wind turbines primarily in the People's Republic of China. This stock closed up 4.4% to $2.83 in Tuesday's trading session.
Tuesday's Range: $2.64-$2.85
52-Week Range: $1.13-$3.52
Tuesday's Volume: 899,000
Three-Month Average Volume: 1.11 million
From a technical perspective, MY spiked higher here right off some near-term support at $2.60 with decent upside volume. This stock has been uptrending over the last two months and change, with shares moving higher from its low of $1.84 to its recent high of $3.11. During that uptrend, shares of MY have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MY within range of triggering a major breakout trade. That trade will hit if MY manages to take out some near-term overhead resistance levels at $2.88 to $2.93 and then $3.11 with high volume.
Traders should now look for long-biased trades in MY as long as it's trending above some key near-term support levels at $2.60 or above its 50-day at $2.42 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.11 million shares. If that breakout hits soon, then MY will set up to re-test or possibly take out its next major overhead resistance levels at $3.35 to its 52-week high at $3.52. Any high-volume move above those levels will then give MY a chance to tag $4.
IMRIS (IMRS) designs, manufactures and sells image-guided therapy systems that enable surgeons to obtain information and make decisions during the course of procedures. This stock closed up 8.5% to $2.15 in Tuesday's trading session.
Tuesday's Range: $1.96-$2.15
52-Week Range: $1.16-$4.31
Tuesday's Volume: 328,000
Three-Month Average Volume: 232,997
From a technical perspective, IMRS ripped higher here back above its 200-day moving average of $2.09 with above-average volume. This move is quickly pushing shares of IMRS within range of triggering a major breakout trade. That trade will hit if IMRS manages to take out some near-term overhead resistance levels at $2.18 to $2.33 and then $2.37 with high volume.
Traders should now look for long-biased trades in IMRS as long as it's trending above Tuesday's low of $1.96 or above more near-term support at $1.80 and then once it sustains a move or close above those breakout levels with volume that hits near or above 232,997 shares. If that breakout hits soon, then IMRS will set up to re-test or possibly take out its next major overhead resistance level at around $2.80.
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.