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.
Nanosphere (NSPH) develops, manufactures and markets an advanced molecular diagnostics platform, the Verigene System, which enables simple, low-cost and highly sensitive genomic and protein testing on a single platform. This stock closed up 7.8% to $2.47 in Thursday's trading session.
Thursday's Range: $2.24-$2.49
52-Week Range: $1.72-$4.49
Thursday's Volume: 529,000
Three-Month Average Volume: 564,530
From a technical perspective, NSPH spiked sharply higher here right above its 50-day moving average of $2.14 with decent upside volume. This move pushed shares of NSPH above some near-term overhead resistance levels at $2.25 to $2.32. Shares of NSPH are now quickly moving within range of triggering a major breakout trade. That trade will hit if NSPH manages to take out its 200-day moving average of $2.56 and then once it clears some more near-term overhead resistance at $2.58 with high volume.
Traders should now look for long-biased trades in NSPH as long as its trending above its 50-day at $2.14, and then once it sustains a move or close above those breakout levels with volume that hits near or above 564,530 shares. If that breakout hits soon, then NSPH will set up to re-fill some of its previous gap down zone from last August that started near $3.10. If that gap gets filled with volume, then NPSH could tag $3.50 to $4.
China New Borun
China New Borun (BORN) engages in the production and distribution of corn-based edible alcohol in the Peoples Republic of China. This stock closed up 7.6% to $2.69 in Thursday's trading session.
Thursday's Range: $2.52-$2.85
52-Week Range: $1.05-$4.40
Thursday's Volume: 832,000
Three-Month Average Volume: 971,761
From a technical perspective, shares of BORN trended sharply higher here with decent upside volume. This stock has been uptrending strong for the last month, with shares moving higher from its low of $1.70 to its recent high of $3.18. During that uptrend, shares of BORN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BORN within range of triggering a big breakout trade. That trade will hit if BORN manages to take out Thursday's high of $2.85 to some more near-term overhead resistance at $3.18 with high volume.
Traders should now look for long-biased trades in BORN as long as it's trending above Thursday's low of $2.52 or above more support at $2.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 971,761 shares. If that breakout triggers soon, then BORN will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $4.40.
Merge Healthcare (MRGE) develops software solutions that facilitate the sharing of images to create a more effective and efficient electronic healthcare experience for patients and physicians. This stock closed up 9% to $2.53 a share in Thursday's trading session.
Thursday's Range: $2.30-$2.56
52-Week Range: $2.13-$4.71
Thursday's Volume: 741,000
Three-Month Average Volume: 405,350
From a technical perspective, MRGE soared sharply higher here back above its 50-day moving average of $2.37 with above-average volume. This move also pushed shares of MRGE into breakout territory, since the stock took out some near-term overhead resistance levels at $2.45 to $2.49. Market players should now look for a continuation move higher in the short-term if MRGE can manage to take out Thursday's high of $2.56 with strong volume.
Traders should now look for long-biased trades in MRGE as long as it's trending above Thursday's low of $2.30 or above more support at $2.20, and then once it sustains a move or close above $2.56 with volume that hits near or above 405,350 shares. If we get that move soon, then MRGE will set up to re-test or possibly take out its next major overhead resistance levels at $2.82 to its 200-day moving average of $3.01 or even its gap-down-day high from August near $3.20. Any high-volume move above $3.20 will then give MRGE a chance to re-fill some of its previous gap-down zone that started at $4.60.
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.