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.
Infosonics (IFON) designs, develops, manufactures, and sells wireless telecommunication products and accessories to wireless carriers, distributors, retailers, dealer agents, resellers, and original equipment manufacturers. This stock closed up 1.6% to $4.33 in Thursday's trading session.
Thursday's Range: $4.11-$4.48
52-Week Range: $0.38-$4.58
Thursday's Volume: 463,000
Three-Month Average Volume: 864,992
From a technical perspective, IFON trended modestly higher here with lighter-than-average volume. This stock has been uptrending strong for the last three months, with shares moving higher from its low of 66 cents per share to its recent high of $4.58. During that uptrend, shares of IFON have been consistently making higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in IFON as long as it's trending above near-term support levels at $4 or at $3.67 and then once it sustains a move or close above its 52-week high of $4.58 with volume that hits near or above 864,992 shares. If that breakout triggers soon, then IFON will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $5 to $5.50.
China Jo-Jo Drugstores
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 16.5% to $2.33 a share in Thursday's trading session.
Thursday's Range: $1.96-$2.35
52-Week Range: $0.47-$2.84
Thursday's Volume: 430,000
Three-Month Average Volume: 211,910
From a technical perspective, CJJD exploded higher here right above some near-term support at $1.90 with strong upside volume. This monster spike higher is quickly pushing shares of CJJD within range of triggering a big breakout trade. That trade will hit if CJJD manages to take out some key near-term overhead resistance at $2.35 with high volume.
Traders should now look for long-biased trades in CJJD as long as it's trending above $2.10 or above Thursday's low of $1.96 and then once it sustains a move or close above $2.35 with volume that hits near or above 211,910 shares. If that breakout gets underway soon, then CJJD will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $2.84. Any high-volume move above that level will then give CJJD a chance to trend north of $3.
Vical (VICL) is engaged in the research and development of biopharmaceutical products based on its DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases. This stock closed up 4.2% to $1.48 a share in Thursday's trading session.
Thursday's Range: $1.40-$1.51
52-Week Range: $1.01-$4.51
Thursday's Volume: 1.17 million
Three-Month Average Volume: 1.82 million
From a technical perspective, VICL jumped notably higher here back above its 50-day moving average of $1.44 with decent upside volume flows. This spike is starting to push shares of VICL within range of triggering a near-term breakout trade above a key downtrend line. That trade will hit if VICL manages to take out some near-term overhead resistance levels at $1.52 to $1.55 with high volume.
Traders should now look for long-biased trades in VICL as long as it's trending above some key near-term support levels at $1.40 or at $1.36 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.82 million shares. If that breakout hits soon, then VICL will set up to re-test or possibly take out its next major overhead resistance levels at $1.60 to $1.66. Any high-volume move above those levels will then give VICL a chance to tag its next major overhead resistance levels at $1.79 to $1.80. Any high-volume move above those levels will then give VICL a chance to re-fill some of its previous gap-down-day zone from last August that started above $3.50.
To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.