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.
Vaalco Energy (EGY), an independent energy company, acquires, explores for, develops and produces crude oil and natural gas. This stock closed up 0.9% to $6.50 in Thursday's trading session.
Thursday's Range: $6.29-$6.53
52-Week Range: $5.03-$9.32
Thursday's Volume: 791,000
Three-Month Average Volume: 724,759
From a technical perspective, EGY trended modestly higher here right above some near-term support at $6.20 with above-average volume. This move is starting to push shares of EGY within range of triggering a near-term breakout trade. That trade will hit if EGY manages to take out some near-term overhead resistance levels at $6.53 to its 200-day moving average of $6.58 and then $6.75 with high volume.
Traders should now look for long-biased trades in EGY as long as it's trending above some key near-term support at $6.20 and then once it sustains a move or close above those breakout levels with volume that hits near or above 724,759 shares. If that breakout hits soon, then EGY will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $7.87 to $7.90.