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.
NeoPhotonics (NPTN) - Get Report designs and manufactures photonic integrated circuit-based optoelectronic modules and subsystems for bandwidth-intensive, high-speed communications networks. This stock closed up 4% to $7.23 a share in Thursday's trading session.
Thursday's Range: $6.90-$7.30
52-Week Range: $4.75-$9.77
Thursday's Volume: 269,000
Three-Month Average Volume: 106,760
From a technical perspective, NPTN spiked notably higher here back above its 200-day moving average of $7.12 with above-average volume. This spike is starting to push shares of NPTN within range of triggering a major breakout trade. That trade will hit if NPTN manages to take out some near-term overhead resistance levels at $7.35 to $7.50 and then once it takes out some past resistance at $7.98 with high volume.
Traders should now look for long-biased trades in NPTN as long as its trending above its 50-day at $6.60 or above its recent low of $6.37 and then once it sustains a move or close above those breakout levels with volume that hits near or above 106,760 shares. If that breakout hits soon, then NPTN will set up to re-test or possibly take out its next major overhead resistance levels at $9 to its 52-week high at $9.77.
Tower Semiconductor (TSEM) - Get Report, an independent semiconductor foundry, manufactures analog intensive mixed-signal semiconductor devices in the U.S., India, the Asia Pacific, Europe, and Israel. This stock closed up 8.1% to $6.65 in Thursday's trading session.
Thursday's Range: $6.22-$6.77
52-Week Range: $3.85-$8.50
Thursday's Volume: 307,000
Three-Month Average Volume: 232,739
From a technical perspective, TSEM spiked sharply higher here and broke out above some near-term overhead resistance levels at $6.34 to $6.45 with above-average volume. This breakout pushed shares of TSEM above the upper-end of its recent sideways trading chart pattern, which is saw the stock move between $5.44 on the downside and $6.45 on the upside. Market players should now look for a continuation move higher in the short-term if TSEM manages to take out Thursday's high of $6.77 with strong volume.
Traders should now look for long-biased trades in TSEM as long as it's trending above Thursday's low of $6.22 or above more support at $5.86 and then once it sustains a move or close above $6.77 with volume that hits near or above 232,739 shares. If we get that move soon, then TSEM will set up to re-test or possibly take out its next major overhead resistance levels at $7.53 to its 52-week high at $8.50.
Parkervision (PRKR) designs, develops, and markets proprietary radio frequency (RF) technologies and products for use in semiconductor circuits for wireless communication products in the U.S. This stock closed up 6.8% to $4.71 in Thursday's trading session.
Thursday's Range: $4.39-$4.72
52-Week Range: $2.16-$7.78
Thursday's Volume: 517,000
Three-Month Average Volume: 978,637
From a technical perspective, PRKR ripped higher here back above its 50-day moving average of $4.58 with lighter-than-average volume. This move is quickly pushing shares of PRKR within range of triggering a major breakout trade. That trade will hit if PRKR manages to take out some near-term overhead resistance levels at $4.89 to $5.12 and then $5.30 with high volume.
Traders should now look for long-biased trades in PRKR as long as its trending above Thursday's low of $4.39 or above its 200-day at $4.11 and then once it sustains a move or close above those breakout levels with volume that hits near or above 978,637 shares. If that breakout hits soon, then PRKR will set up to re-fill some of its previous gap-down-day zone from last October that started near $7.50.
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.
Follow Stockpickr on Twitter and become a fan on Facebook.
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.