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.
Photronics (PLAB), together with its subsidiaries, manufactures and sells photomasks in the U.S. This stock closed up 3.6% to $8.82 a share in Thursday's trading session.
Thursday's Range: $8.56-$8.85
52-Week Range: $7.03-$9.75
Thursday's Volume: 299,000
Three-Month Average Volume: 306,417
From a technical perspective, PLAB spiked notably higher here right off its 50-day moving average of $8.50 with decent upside volume. This move is quickly pushing shares of PLAB within range of triggering a near-term breakout trade. That trade will hit if PLAB manages to take out some key near-term overhead resistance levels at $8.86 to$8.95 with strong upside volume flows.
Traders should now look for long-biased trades in PLAB as long as it's trending above its 50-day at $8.50 or above its 200-day at $8.26 and then once it sustains a move or close above those breakout levels with volume that hits near or above 306,417 shares. If that breakout materializes soon, then PLAB will set up to re-test or possibly take out its next major overhead resistance levels at $9.24 to its 52-week high at $9.75.