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.
China Jo-Jo Drugstores (CJJD) operates as a retailer and distributor of pharmaceutical and other healthcare products in the People's Republic of China. This stock closed up 2.9% to $1.74 in Thursday's trading session.
Thursday's Range: $1.62-$1.79
52-Week Range: $0.47-$1.99
Thursday's Volume: 176,000
Three-Month Average Volume: 141,451
From a technical perspective, CJJD jumped higher here with above-average volume. This stock briefly traded into breakout territory, after shares of CJJD flirted with some near-term overhead resistance at $1.78. Traders should now look for a continuation move higher in the short-term if CJJD manages to take out Thursday's high of $1.79 with strong volume.
Traders should now look for long-biased trades in CJJD as long as it's trending above Thursday's low of $1.62 or above more support at $1.50 and then once it sustains a move or close above $1.79 with volume that hits near or above 141,451 shares. If that move materializes soon, then CJJD will set up to re-test or possibly take out its next major overhead resistance levels at $1.90 to its 52-week high at $1.99.