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.
VirnetX (VHC) - Get VirnetX Holding Corporation Report develops software and technology solutions for securing real-time communications over the Internet. This stock closed up 8.5% to $5.45 in Thursday's trading session.
Thursday's Range: $5.20-$5.57
52-Week Range: $4.03-$25.49
Thursday's Volume: 432,000
Three-Month Average Volume: 1.42 million
From a technical perspective, VHC ripped higher here with lighter-than-average volume. This stock has been uptrending over the last few weeks, with shares moving higher from its low of $4.03 to its recent high of $5.89. During that move, shares of VHC have been consistently making higher lows and higher highs, which is bullish technical price action. This spike higher on Thursday is quickly pushing shares of VHC within range of triggering a near-term breakout trade. That trade will hit if VHC manages to take out Thursday's intraday high of $5.57 to some more near-term overhead resistance at $5.89 with high volume.
Traders should now look for long-biased trades in VHC as long as it's trending above $5 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.42 million shares. If that breakout hits soon, then VHC will set up to re-test or possibly take out its next major overhead resistance levels at $6.80 to $7. Any high-volume move above those levels will then give VHC a chance to re-fill some of its previous gap-down-day zone from September that started at $9.
Procera Networks (PKT) provides intelligent policy enforcement solutions based on deep packet inspection technology that enable mobile and broadband network operators and entities to manage and control their private networks. This stock closed up 3.3% to $7.12 in Thursday's trading session.
Thursday's Range: $7.00-$7.16
52-Week Range: $5.60-$15.45
Thursday's Volume: 438,000
Three-Month Average Volume: 306,606
From a technical perspective, PKT bounced notably higher here with above-average volume. This stock recently gapped down sharply lower from close to $9 to under $6 with heavy downside volume. Following that move, shares of PKT immediately bottomed and started to uptrend, with the stock moving higher from its new 52-week low of $5.60 to its recent high of $7.17. During that move, shares of PKT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of PKT within range of triggering a near-term breakout trade. That trade will hit if PKT manages to take out its recent high of $7.17 with high volume.
Traders should now look for long-biased trades in PKT as long as it's trending above some near-term support around $6.50 and then once it sustains a move or close above $7.17 with volume that hits near or above 306,606 shares. If that breakout gets underway soon, then PKT will set up to re-fill some more of its previous gap-down-day zone that started near $9.
Dynavax Technologies (DVAX) - Get Dynavax Technologies Corporation Report , a clinical-stage biopharmaceutical company, discovers and develops products to prevent and treat infectious and inflammatory diseases and cancer. This stock closed up 4% to $1.53 in Thursday's trading session.
Thursday's Range: $1.44-$1.53
52-Week Range: $1.10-$2.14
Thursday's Volume: 10.87 million
Three-Month Average Volume: 1.46 million
From a technical perspective, DVAX ripped higher here right off its 50-day moving average of $1.42 with monster upside volume. This stock recently formed a major bottoming chart pattern, since over the last two months and change, shares of DVAX have found buying interest each time it has pulled back to just under $1.35. Shares of DVAX are now starting to spike higher off those support levels and it's now quickly moving within range of triggering a near-term breakout trade. That trade will hit if DVAX manages to take out some key near-term overhead resistance levels at $1.55 to $1.58 with high volume.
Traders should now look for long-biased trades in DVAX as long as it’s trending above its 50-day at $1.42 and then once it takes out those breakout levels with volume that hits near or above 1.46 million shares. If that breakout hits soon, then DVAX will set up to re-test or possibly take out its next major overhead resistance levels at 1.63 to $1.66, or even $1.84.
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.