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.
Northwest Biotherapeutics (NWBO), a development stage biotechnology company, engages in discovering, developing and commercializing immunotherapy products to treat cancers in the U.S. This stock closed up 6.2% to $7.69 in Tuesday's trading session.
Tuesday's Range: $7.28-$7.74
52-Week Range: $3.10-$10.64
Tuesday's Volume: 965,000
Three-Month Average Volume: 1.15 million
From a technical perspective, NWBO spiked sharply higher here right above some near-term support at $7 and $6.80 with decent upside volume. This stock has pulled back sharply off its recent high of $10.64 to its low of $6.80. During that decline, shares of NWBO have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of NWBO have now started to rebound higher off that $6.80 low and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if NWBO manages to take out Tuesday's high of $7.74 to some more near-term overhead resistance at $8.09 with high volume.
Traders should now look for long-biased trades in NWBO as long as it's trending above support at $7 or at $6.80 and then once it sustains a move or close above those breakout levels volume that hits near or above 1.15 million shares. If that breakout hits soon, then NWBO will set up to re-test or possibly take out its next major overhead resistance levels at $8.42 to $9. Any high-volume move above those levels will then give NWBO a chance to tag its 52-week high at $10.64.