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.
ArQule (ARQL), a clinical-stage biotechnology company, researches and develops cancer therapeutics. This stock closed up 4.9% to $1.49 in Thursday's trading session.
Thursday's Range: $1.38-$1.50
52-Week Range: $1.38-$2.94
Thursday's Volume: 464,000
Three-Month Average Volume: 321,548
From a technical perspective, ARQL bounced sharply higher here right off its 52-week low of $1.38 with above-average volume. This stock has been downtrending badly for the last four months, with shares moving lower from its high of $2.92 to its 52-week low of $1.38. During that downtrend, shares of ARQL have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of ARQL now look ready to reverse its downtrend and experience a powerful bounce higher off depressed levels. Market players should now look for a continuation move to the upside in the short-term if ARQL manages to take out Thursday's intraday high of $1.50 with strong volume.
Traders should now look for long-biased trades in ARQL as long as it's trending above its 52-week low of $1.38 and then once it sustains a move or close above $1.50 with volume that hits near or above 321,548 shares. If that move starts soon, then ARQL will set up to re-test or possibly take out its next major overhead resistance levels at $1.60 to $1.66, or even $1.78 or its 50-day moving average of $1.84.