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.
DFC Global (DLLR), through its subsidiaries, provides retail financial services to unbanked and under-banked consumers, and small businesses. This stock closed up 5.5% to $8.76 a share in Thursday's trading session.
Thursday's Range: $8.11-$8.78
52-Week Range: $6.24-$16.88
Thursday's Volume: 366,000
Three-Month Average Volume: 705,231
From a technical perspective, DLLR spiked sharply higher here back above its 50-day moving average $8.51 with lighter-than-average volume. This move is quickly pushing shares of DLLR within range of triggering a major breakout trade. That trade will hit if DLLR manages to take out Thursday's high of $8.78 to some more near-term overhead resistance levels at $8.96 to $9.10 with high volume.
Traders should now look for long-biased trades in DLLR as long as it's trending above some near-term support levels at $8 or at $7.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 705,231 shares. If that breakout gets underway soon, then DLLR will set up to re-fill some of its previous gap-down-day zone from January that started at $10.96.