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.
Charles & Colvard
Charles & Colvard (CTHR) manufactures, markets and distributes moissanite jewels and finished jewelry featuring moissanite worldwide. This stock closed up 2.8% to $2.15 in Tuesday's trading session.
Tuesday's Range: $2.10-$2.20
52-Week Range: $1.87-$8.34
Tuesday's Volume: 810,000
Three-Month Average Volume: 124,819
From a technical perspective, CTHR spiked higher here and flirted with breakout territory above some near-term overhead resistance at $2.15 with monster upside volume. Market players should now look for a continuation move to the upside in the near-term if CTHR manages to take out Tuesday's high of $2.20 with above-average volume.
Traders should now look for long-biased trades in CTHR as long as it's trending above some near-term support at $2 or above more previous support levels at $1.91 to $1.87 and then once it sustains a move or close above $2.20 with volume that hits near or above 124,819 shares. If that move gets started soon, then CTHR will set up to re-test or possibly take out its next major overhead resistance levels at $2.50 to $2.75. Any high-volume move above those levels will then give CTHR a chance to tag its 50-day moving average of $2.98.