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.
Kofax (KFX) provides capture and business process management software and related maintenance and professional services. This stock closed up 8.8% to $7.86 in Tuesday's trading session.
Tuesday's Range: $7.60-$8.00
52-Week Range: $6.50-$8.50
Tuesdays Volume: 623,000
Three-Month Average Volume: 240,008
From a technical perspective, KFX gapped up sharply higher here and broke out above some near-term overhead resistance at $7.74 with strong upside volume. This move also briefly pushed shares of KFX into above another breakout level at $8, before the stock cooled off into the close and finished at $7.86. Market players should now look for a continuation move higher in the short-term if KFX manages to take out Tuesday's high of $8.10 with strong volume.
Traders should now look for long-biased trades in KFX as long as it's trending above Tuesday's low of $7.60 or above its 50-day at $7.01 and then once it sustains a move or close above $8.10 with volume that hits near or above 240,008 shares. If we get that move soon, then KFX will set up to re-test or possibly take out its 52-week high at $8.50. Any high-volume move above $8.50 will then give KFX a chance to tag $9 to $9.50.
B2Gold (BTG) engages in the exploration and development of mineral properties in Nicaragua, Colombia, Namibia and Uruguay. This stock closed up 1.6% to $2.49 in Tuesday's trading session.
Tuesday's Range: $2.41-$2.52
52-Week Range: $1.78-$3.82
Tuesday's Volume: 1.19 million
Three-Month Average Volume: 1.56 million
From a technical perspective, BTG spiked modestly higher here right off its 200-day moving average of $2.41 with decent upside volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $1.85 to its intraday high of $2.52. During that uptrend, shares of BTG have been consistently making higher lows and higher highs, which is bullish technical price action. This spike on Tuesday is quickly pushing shares of BTG within range of triggering a near-term breakout trade. That trade will hit if BTG manages to take out $2.52 with high volume.
Traders should now look for long-biased trades in BTG as long as its trending above its 200-day at $2.41 or above its 50-day at $2.16 and then once it sustains a move or close above $2.52 with volume that hits near or above 1.56 million shares. If that breakout hits soon, then BTG will set up to re-test or possibly take out its next major overhead resistance levels at $2.76 to $2.96. Any high-volume move above those levels will then give BTG a chance to tag $3.20 to $3.50.
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.