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.
Tremor Video (TRMR) provides online video advertising services for advertisers, agencies and publisher partners in the U.S. This stock closed up 6.6% to $4.67 in Tuesday's trading session.
Tuesday's Range: $4.37-$4.71
52-Week Range: $3.59-$11.09
Tuesday's Volume: 366,000
Three-Month Average Volume: 244,471
From a technical perspective, TRMR spiked sharply higher here right off its 50-day moving average of $4.44 and into breakout territory above $4.48 with above-average volume. This move is starting to push shares of TRMR within range of triggering another big breakout trade. That trade will hit if TRMR manages to take out Tuesday's high of $4.71 to some more key near-term overhead resistance levels at $5.06 to $5.17 with high volume.
Traders should now look for long-biased trades in TRMR as long as it's trending above Tuesday's low of $4.37 or above $4.20 and then once it sustains a move or close above those breakout levels with volume that hits near or above 244,471 shares. If that breakout materializes soon, then TRMR will set up to re-test or possibly take out its next major overhead resistance level at $5.84. Any high-volume move above $5.84 will then give TRMR a chance re-fill some of its previous gap-down-day zone from last November that started at $10.50.