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.
MAG Silver (MVG) focuses on advancing two significant projects located within the Mexican Silver Belt. It explores for silver, lead, zinc, copper and gold. This stock closed up 4.6% to $7.72 in Tuesdays trading session.
Tuesday's Range: $7.35-$7.76
52-Week Range: $4.87-$8.99
Tuesday's Volume: 38,000
Three-Month Average Volume: 71,955
From a technical perspective, MVG spiked sharply higher here back above its 50-day moving average of $7.64 with lighter-than-average volume. This sock has been uptrending for the last few weeks, with shares moving higher off its 200-day moving average at around $6.30 to its recent high of $7.85. During that move, shares of MVG have been consistently making higher lows and higher highs, which is bullish technical price action. Shares of MVG are now quickly moving within range of triggering a near-term breakout trade. That trade will hit if MVG manages to take out some near-term overhead resistance levels at $7.85 to $7.86 with high volume.
Traders should now look for long-biased trades in MVG as long as it's trending above some near-term support levels at $7.25 or at $7 and then once it sustains a move or close above those breakout levels with volume that hits near or above 71,955 shares. If that breakout kicks off soon, then MVG will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high at $8.99.