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.
American Apparel (APP), designs, manufactures, distributes, retails and sells branded fashion basic apparel products, and clothing and accessories for women, men, children, and babies. This stock closed up 6.3% to 65 cents per share in Thursday's trading session.
Thursday's Range: $0.57-$0.66
52-Week Range: $0.46-$2.17
Thursday's Volume: 2.12 million
Three-Month Average Volume: 2.65 million
From a technical perspective, APP bounced sharply higher here right off its 50-day moving average of 61 cents per share with decent upside volume. This stock recently pulled back from 75 cents per share to Thursday's low of 57 cents per share with light downside volume. Market players should now look for a continuation move higher in the short-term if APP manages to take out Thursday's intraday high of 66 cents per share with high volume.
Traders should now look for long-biased trades in APP as long as it's trending above its 50-day at 61 cents per share and then once it sustains a move or close above 66 cents per share with volume that hits near or above 2.65 million shares. If that move kicks off soon, then APP will set up to re-test or possibly take out its next major overhead resistance levels at 75 to 82 cents per share.