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.
YuMe (YUME) provides digital video brand advertising solutions. This stock closed up 10.3% to $7.81 in Tuesday's trading session.
Tuesday's Range: $7.11-$7.88
52-Week Range: $5.79-$12.08
Tuesday's Volume: 591,000
Three-Month Average Volume: 238,225
From a technical perspective, YUME exploded higher here right off its 50-day moving average of $7.19 with above-average volume. This move pushed shares of YUME into breakout territory, since the stock took out and closed above some near-term overhead resistance at $7.88. This move is starting to push shares of YUME within range of triggering another major breakout trade. That trade will hit if YUME manages to take out Tuesday's high of $7.88 to some more near-term overhead resistance at $8.09 with high volume.
Traders should now look for long-biased trades in YUME as long as it's trending above Tuesday's low of $7.11 or above $7 and then once it sustains a move or close above those breakout levels with volume that hits near or above 238,225 shares. If that breakout gets underway soon, then YUME will set up to re-test or possibly take out its next major overhead resistance levels at $8.80 to $9, or even $9.40 to $10.