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.
Atlantic Power (AT) owns and operates a fleet of power generation assets in the U.S. and Canada. This stock closed up 9.5% to $2.97 in Tuesday's trading session.
Tuesday's Range: $2.67-$3.00
52-Week Range: $2.11-$5.57
Tuesday's Volume: 2.53 million
Three-Month Average Volume: 1.50 million
From a technical perspective, AT skyrocketed sharply higher here back above its 50-day moving average of $2.75 with above-average volume. This stock has been uptrending for the last two months, with shares moving higher from its low of $2.08 to its recent high of $2.98. During that move, shares of AT have been making mostly higher lows and higher highs, which is bullish technical price action. This sharp spike higher on Tuesday is quickly pushing shares of AT within range of triggering a near-term breakout trade. That trade will hit if AT manages to take out Tuesday's high of $3 to some more near-term overhead resistance at $3.10 with high volume.
Traders should now look for long-biased trades in AT as long as it's trending above Tuesday's low of $2.67 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.50 million shares. If that breakout starts soon, then AT will set up to re-test or possibly take out its next major overhead resistance levels at $3.50 to $3.75.