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.
Parametric Sound (HEAR), an audio technology company, designs and markets audio peripherals for video game, personal computer and mobile platforms in North America, Europe, and Asia. This stock closed up 5.2% to $9.98 a share in Thursday's trading session.
Thursday's Range: $9.35-$10.05
52-Week Range: $7.58-$18.80
Thursday's Volume: 208,000
Three-Month Average Volume: 177,321
From a technical perspective, HEAR ripped higher here and broke out above some near-term overhead resistance at $9.70 with above-average volume. This stock recently gapped down sharply from over $13 to under $9.50 with heavy downside volume. Following that move, shares of HEAR went on to print a new 52-week low at $7.58. This stock has now rebounded sharply off that $7.58 low and it's quickly moving within range of triggering a major breakout trade. That trade will hit if HEAR manages to take out its gap-down-day high of $10.05 with strong volume.
Traders should now look for long-biased trades in HEAR as long as it's trending above support at $9 or at $8.50 and then once it sustains a move or close above $10.05 with volume that hits near or above 177,321 shares. If that breakout hits soon, then HEAR will set up to re-fill some of its previous gap-down-day zone from April that started above $13.