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.
Raptor Pharmaceuticals (RPTP), a biopharmaceutical company, focuses on developing and commercializing life-altering therapeutics that treat debilitating and often fatal diseases. This stock closed up 4.1% to $8.84 a share in Tuesday's trading session.
Tuesday's Range: $8.46-$8.85
52-Week Range: $6.69-$17.72
Tuesday's Volume: 723,000
Three-Month Average Volume: 1.05 million
From a technical perspective, RPTP spiked notably higher here back above its 50-day moving average of $8.80 with lighter-than-average volume. This spike higher on Tuesday is quickly pushing shares of RPTP within range of triggering a big breakout trade. That trade will hit if RPTP manages to take out Tuesday's intraday high of $8.85 to some more key overhead resistance levels at $9 to $9.09 with high volume.
Traders should now look for long-biased trades in RPTP as long as it's trending above Tuesday's low of $8.46 or above more near-term support at $8.30 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.05 million shares. If that breakout triggers soon, then RPTP will set up to re-test or possibly take out its next major overhead resistance levels at $10.50 to $11.50.