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.
Cleantech Solutions (CLNT), through its subsidiaries, manufactures and sells forged products and fabricated products to a range of clean technology customers in the People's Republic of China. This stock closed up 2% to $5.68 a share in Thursday's trading session.
Thursday's Range: $5.45-$5.80
52-Week Range: $2.93-$10.85
Thursday's Volume: 72,000
Three-Month Average Volume: 103,832
From a technical perspective, CLNT trended modestly higher here right above both its 50-day moving average of $5.41 and its 200-day moving average of $5.47 with decent upside volume flows. This move is starting to push shares of CLNT within range of triggering a big breakout trade. That trade will hit if CLNT manages to take out Thursday's high of $5.80 to some more near-term overhead resistance at $6.20 with high volume.
Traders should now look for long-biased trades in CLNT as long as it's trending above its 50-day at $5.41 or above more support at $5.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 103,832 shares. If that breakout hits soon, then CLNT will set up to re-test or possibly take out its next major overhead resistance level at $6.75. Any high-volume move above $6.75 will then give CLNT a chance to re-fill some of its previous gap-down-day zone from last November that started at $7.39.