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.
ProPhase (PRPH) engages in the manufacture, marketing and distribution of homeopathic and health products to the general public. This stock closed up 6.3% to $2.01 in Thursday's trading session.
Thursday's Range: $1.88-$2.10
52-Week Range: $1.41-$2.98
Thursday's Volume: 75,000
Three-Month Average Volume: 80,112
From a technical perspective, PRPH spiked higher here back above its 50-day moving average of $1.92 with decent upside volume. This move is starting to push shares of PRPH within range of triggering a big breakout trade. That trade will hit if PRPH manages to take out some near-term overhead resistance levels at $2.10 to $2.20 with high volume.
Traders should now look for long-biased trades in PRPH as long as it's trending above Thursday's low of $1.88 or above its 200-day at $1.76 and then once it sustains a move or close above those breakout levels with volume that hits near or above 80,112 shares. If that breakout hits soon, then PRPH will set up to re-test or possibly take out its 52-week high at $2.98.