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.
Himax Technologies (HIMX) designs, develops and markets semiconductors for flat panel displays. This stock closed up 3.5% to $9.32 a share in Tuesday's trading session.
Tuesday's Range: $8.61-$9.37
52-Week Range: $4.76-$16.15
Tuesday's Volume: 12.97 million
Three-Month Average Volume: 7.79 million
From a technical perspective, HIMX trended higher here right above some longer-term support at $8.13 with strong upside volume. This stock has been downtrending badly for the last month, with shares moving lower from its high of $16.08 to its intraday low of $8.61. During that downtrend, shares of HIMX have been consistently making lower highs and lower lows, which is bearish technical price action. That downtrend has now pushed shares of HIMX into oversold territory, since its current relative strength index reading is 28.53. Oversold can always get more oversold, but since HIMX trended up on Tuesday with strong volume, this stock how has a good chance to bounce higher.
Traders should now look for long-biased trades in HIMX as long as it's trending above Tuesday's low of $8.61 and then once it sustains a move or close above Tuesday's high of $9.37 with volume that hits near or above 7.79 million shares. If that move gets underway soon, then HIMX could easily bounce sharply higher back towards its 200-day moving average of $10.50 to $11.50.