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.
Protalix Bio Therapeutics
Protalix Bio Therapeutics (PLX), a biopharmaceutical company, together with its subsidiary, Protalix Ltd., focuses on the development and commercialization of recombinant therapeutic proteins based on its proprietary ProCellEx protein expression system. This stock closed up 1% to $4.85 in Thursday's trading session.
Thursday's Range: $4.80-$4.94
52-Week Range: $3.70-$6.73
Thursday's Volume: 267,000
Three-Month Average Volume: 255,733
From a technical perspective, PLX trended modestly higher here and briefly traded back above its 200-day moving average of $4.85 with above-average volume. This stock has been uptrending strong for the last few weeks, with shares soaring higher from its low of $3.79 to its recent high of $4.94. During that uptrend, shares of PLX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of PLX within range of triggering a near-term breakout trade. That trade will hit if PLX manages to take out some near-term overhead resistance at $4.94 with high volume.
Traders should now look for long-biased trades in PLX as long as it's trending above some near-term support at $4.60 or at $4.40 and then once it sustains a move or close above $4.94 with volume that hits near or above 255,733 shares. If that breakout triggers soon, then PLX will set up to re-test or possibly take out its next major overhead resistance levels at $5.60 to $5.71, or even $6.
Threshold Pharmaceuticals (THLD), a biotechnology company, focuses on the discovery and development of drugs targeting the severe hypoxia in the microenvironment of solid tumors and the bone marrows of patients with hematological malignancies. This stock closed up 3% to $5 a share in Thursday's trading session.
Thursday's Range: $4.81-$5.01
52-Week Range: $4.02-$6.11
Thursday's Volume: 1.14 million
Three-Month Average Volume: 453,816
From a technical perspective, THLD jumped higher here back above its 200-day moving average of $4.90 with strong upside volume. This move is quickly pushing shares of THLD within range of triggering a big breakout trade. That trade will hit if THLD manages to take out some near-term overhead resistance at $5.03 to some past overhead resistance at $5.23 to $5.36 with high volume.
Traders should now look for long-biased trades in THLD as long as it's trending its 50-day at $4.63 and then once it sustains a move or close above those breakout levels with volume that hits near or above 453,816 shares. If that breakout hits soon, then THLD will set up to re-test or possibly take out its next major overhead resistance levels $6.05 to its 52-week high at $6.11.
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.