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.
BioScrip (BIOS) provides home infusion and other home care services, and pharmacy benefit management services in the U.S. This stock closed up 2.9% to $7.28 a share in Thursday's trading session.
Thursday's Range: $7.05-$7.30
52-Week Range: $5.61-$17.62
Thursday's Volume: 1.51 million
Three-Month Average Volume: 1.74 million
From a technical perspective, BIOS jumped modestly higher here with decent upside volume. This stock has been downtrending for the last month, with shares moving lower from its high of $8.90 to its low of $6.63. During that move, shares of BIOS have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of BIOS have started to rebound off that $6.63 low and it's now starting to move within range of triggering a near-term breakout trade. That trade will hit if BIOS manages to take out some near-term overhead resistance at $7.71 to its 50-day moving average of $7.73 with high volume.
Traders should now look for long-biased trades in BIOS as long as it's trending above some near-term support levels at $6.75 or at $6.63 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.74 million shares. If that breakout starts soon, then BIOS will set up to re-test or possibly take out its next major overhead resistance levels at $8.25 to $8.90, or even $9.05.