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.
Whiting USA Trust I
Whiting USA Trust I (WHX) is a REIT. The trust was founded in 2007 and is based in Austin, Texas. This stock closed up 2% to $2.96 in Thursday's trading session.
Thursday's Range: $2.82-$2.97
52-Week Range: $2.32-$6.70
Thursday's Volume: 591,000
Three-Month Average Volume: 389,848
From a technical perspective, WHX bounced notably higher here right above some near-term support at $2.75 to $2.68 with above-average volume. This spike higher on Thursday is quickly pushing shares of WHX within range of triggering a big breakout trade. That trade will hit if WHX clears some key near-term overhead resistance levels at $2.98 to $3.11 with strong upside volume flows.
Traders should now look for long-biased trades in WHX as long as it's trending above some near-term support levels at $2.75 or at $2.68 and then once it sustains a move or close above those breakout levels with volume that hits near or above 389,848 shares. If that breakout gets underway soon, then WHX will set up to re-fill some of its previous gap-down-day zone from April that started at $5.25.