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.
Whiting USA Trust I
Whiting USA Trust I (WHX) is a REIT. The trust was founded in 2007 and is based in Austin, Texas. This stock closed up 2% to $2.96 in Thursday's trading session.
Thursday's Range: $2.82-$2.97
52-Week Range: $2.32-$6.70
Thursday's Volume: 591,000
Three-Month Average Volume: 389,848
From a technical perspective, WHX bounced notably higher here right above some near-term support at $2.75 to $2.68 with above-average volume. This spike higher on Thursday is quickly pushing shares of WHX within range of triggering a big breakout trade. That trade will hit if WHX clears some key near-term overhead resistance levels at $2.98 to $3.11 with strong upside volume flows.
Traders should now look for long-biased trades in WHX as long as it's trending above some near-term support levels at $2.75 or at $2.68 and then once it sustains a move or close above those breakout levels with volume that hits near or above 389,848 shares. If that breakout gets underway soon, then WHX will set up to re-fill some of its previous gap-down-day zone from April that started at $5.25.
iBio (IBIO) - Get Report, a biotechnology company, focuses on the commercialization of its proprietary plant-based protein expression technologies in the U.S. and internationally. This stock closed up 7.6% to 47 cents per share in Thursday's trading session.
Thursday's Range: $0.43-$0.48
52-Week Range: $0.28-$0.85
Thursday's Volume: 406,000
Three-Month Average Volume: 232,626
From a technical perspective, IBIO ripped higher here back above its 200-day moving average of 45 cents per share with above-average volume. This stock recently formed a triple bottom chart pattern at 40 cents, 42 cents and 42 cents per share. Following that bottom, shares of IBIO have now started to spike higher off those support levels and it's now moving within range of triggering a major breakout trade. That trade will hit if IBIO manages to take out some near-term overhead resistance levels at 48 cents per share to its 50-day moving average of 50 cents per share with high volume.
Traders should now look for long-biased trades in IBIO as long as its trending above those major support levels at 42 or at 40 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 232,626 shares. If that breakout materializes soon, then IBIO will set up to re-test or possibly take out its next major overhead resistance levels at 54 cents per share to 60 cents per share. Any high-volume move above those levels will then give IBIO a chance to tag 68 cents per share.
Cytokinetics (CYTK) - Get Report, a clinical stage biopharmaceutical company, focuses on the discovery and development of novel small molecule therapeutics that modulate muscle function for the potential treatment of serious diseases and medical conditions. This stock closed up 6% to $4.71 in Thursday's trading session.
Thursday's Range: $4.35-$4.72
52-Week Range: $3.96-$14.28
Thursday's Volume: 1.21 million
Three-Month Average Volume: 1.51 million
From a technical perspective, CYTK spiked sharply higher with decent upside volume. This stock recently gapped down sharply from its high of $13.26 to below $5 with heavy downside volume. Following that gap down, shares of CYTK continued to slide lower to its recent 52-week low of $3.96. Shares of CYTK have now started to rebound off that $3.96 low and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if CYTK manages to take out Thursday's intraday high of $4.72 to some more near-term overhead resistance at $4.78 with high volume.
Traders should now look for long-biased trades in CYTK as long as it's trending above Thursday's low of $4.35 or above its 52-week low of $3.96 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.51 million shares. If that breakout hits soon, then CYTK will set up to re-test or possibly take out its gap-down-day high of $5.45. Any high-volume move above $5.45 will then give CYTK a chance to re-fill some of its previous gap-down-day zone that started at $13.26.
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.