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.