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.
Echo Therapeutics (ECTE) operates as a transdermal medical device company in the U.S. This stock closed up 2% to $3.27 a share in Friday's trading session.
Friday's Range: $3.17-$3.28
52-Week Range: $1.80-$8.30
Friday's Volume: 197,000
Three-Month Average Volume: 223,427
From a technical perspective, ECTE spiked modestly higher here right above its 200-day moving average of $2.99 with decent upside volume. This move is quickly pushing shares of ECTE within range of triggering a big breakout trade. That trade will hit if ECTE manages to take out its 50-day moving average of $3.31 to some more near-term overheard resistance at $3.34 with high volume.
Traders should now look for long-biased trades in ECTE as long as it's trending above its 200-day at $2.99 and then once it sustains a move or close above those breakout levels with volume that hits near or above 223,427 shares. If that breakout starts soon, then ECTE will set up to re-test or possibly take out its next major overhead resistance levels at $4.02 to $4.13, or even $4.91.