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.
U.S. Auto Parts Network (PRTS), together with its subsidiaries, operates as an online retailer of automotive aftermarket parts and accessories primarily in the U.S., Canada and the Philippines. This stock closed up 9.2% to $2.24 in Tuesday's trading session.
Tuesday's Range: $2.07-$2.36
52-Week Range: $0.91-$3.18
Tuesday's Volume: 155,000
Three-Month Average Volume: 59,522
From a technical perspective, PRTS jumped sharply higher here right above some near-term support at $2 with above-average volume. This move briefly pushed shares of PRTS back above its 50-day moving average of $2.31, before the stock closed just below that level at $2.24. This move is starting to push shares of PRTS within range of triggering a major breakout trade. That trade will hit if PRTS manages to take out Tuesday's high of $2.36 and then once it clears some more key overhead resistance levels at $2.60 to $2.69 with high volume.