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.
Rexahn Pharmaceuticals (RNN) , a clinical stage biopharmaceutical company, engages in the discovery, development and commercialization of treatments for cancer, central nervous system disorders, sexual dysfunction and other medical needs. This stock closed up 16.2% to $1.29 in Tuesday's trading session.
Tuesday's Range: $1.11-$1.29
52-Week Range: $0.28-$1.85
Tuesday's Volume: 19.37 million
Three-Month Average Volume: 9.15 million
From a technical perspective, RNN skyrocketed higher here with heavy upside volume. This stock recently formed a double bottom chart pattern at $1.01 to $1.04. Following that bottom, shares of RNN have soared higher and this stock is now approaching a big breakout trade. That trade will hit if RNN manages to take out some key near-term overhead resistance at $1.30 with high volume.
Traders should now look for long-biased trades in RNN as long as it's trending above $1.20 and then once it sustains a move or close above $1.30 with volume that hits near or above 9.15 million shares. If that breakout materializes soon, then RNN will set up to re-test or possibly take out its next major overhead resistance levels at $1.60 to its 52-week high at $1.85.
Prosensa Holding (RNA) , a biotechnology company, engages in the discovery and development of ribonucleic acid-modulating therapeutics for the treatment of genetic disorders. This stock closed up 2% to $6.55 in Tuesday's trading session.
Tuesday's Range: $6.24-$6.59
52-Week Range: $3.43-$34.55
Tuesday's Volume: 236,000
Three-Month Average Volume: 432,218
From a technical perspective, RNA trended modestly higher here right above its 50-day moving average of $5.71 with lighter-than-average volume. This stock has been uptrending strong for the last four months, with shares moving higher from its low of $3.43 to its recent high of $8.29. During that uptrend, shares of RNA have been making mostly higher lows and higher highs, which is bullish technical price action. This spike on Tuesday is now starting to push shares of RNA within range of triggering a near-term breakout trade. That trade will hit if RNA manages to take out some near-term overhead resistance at $6.75 with high volume.
Traders should now look for long-biased trades in RNA as long as it's trending above some key near-term support levels at $6.01 or above its 50-day at $5.71 and then once it sustains a move or close above $6.75 with volume that hits near or above 432,218 shares. If that breakout hits soon, then RNA will set up to re-test or possibly take out its next major overhead resistance level at $8.29. Any high-volume move above that level will then give RNA a chance to re-fill some of its previous gap-down-day zone from last September that started at $24.
Onconova Therapeutics (ONTX) - Get Onconova Therapeutics Inc. Report, a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule drug candidates to treat cancer. This stock closed up 1.1% to $9.10 in Tuesday's trading session.
Tuesday's Range: $9.00-$9.16
52-Week Range: $7.75-$31.13
Tuesday's Volume: 322,000
Three-Month Average Volume: 356,157
From a technical perspective, ONTX trended modestly higher here with decent upside volume. This stock recently gapped down sharply from around $14 to $7.75 with monster downside volume. Following that gap down, shares of ONTX have now started to rebound higher off oversold levels since its current relative strength index reading is below 30. Oversold can always get more oversold, but it's also an area where a stock can make a powerful bounce higher from.
Traders should now look for long-biased trades in ONTX as long as it's trending above some near-term support at $8.50 and then once it sustains a move or close above resistance at $9.34 with volume that hits near or above 356,157 shares. If that move materializes soon, then ONTX will set up to re-fill some of its previous gap-down-day zone that started around $14. Some possible upside targets if ONTX gets into that gap with volume are $11 to $12.
Arca Biopharma (ABIO) - Get ARCA biopharma, Inc. Report, a biopharmaceutical company, focuses on developing genetically-targeted therapies for cardiovascular diseases. This stock closed up 6.3% to $1.93 in Tuesday's trading session.
Tuesday's Range: $1.81-$1.97
52-Week Range: $1.13-$3.93
Tuesday's Volume: 2.70 million
Three-Month Average Volume: 1.47 million
From a technical perspective, ABIO spiked sharply higher here right off its 50-day moving average of $1.83 with strong upside volume. Traders should now look for a continuation move to the upside here in the short-term if shares of ABIO manage to take out Tuesday's high of $1.97 to some more near-term overhead resistance at $2.07 with high volume.
Traders should now look for long-biased trades in ABIO as long as its trending above Tuesday's low of $1.81 and then once it sustains a move or close above $1.97 to $2.07 with volume that hits near or above 1.47 million shares. If that move gets underway soon, then ABIO will set up to re-test or possibly take out its next major overhead resistance levels at $2.28 to $2.54, or even $2.78.
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.