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.
Magnegas (MNGA), an alternative energy company, produces hydrogen-based alternative fuel through the gasification of carbon-rich liquids in the U.S. and internationally. This stock closed up 6.5% to $1.62 in Thursday's trading session.
Thursday's Range: $1.47-$1.63
52-Week Range: $0.40-$2.45
Thursday's Volume: 1.27 million
Three-Month Average Volume: 3.17 million
From a technical perspective, MNGA ripped sharply higher here right above some near-term support at $1.46 and right above its 50-day moving average of $1.39 with lighter-than-average volume. This spike higher on Thursday is starting to push shares of MNGA within range of triggering a major breakout trade. That trade will hit if MNGA manages to take out Thursday's intraday high of $1.63 to more key overhead resistance at $1.83 with high volume.
Traders should now look for long-biased trades in MNGA as long as it's trending above support at $1.46 or above its 50-day at $1.39 and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.17 million shares. If that breakout gets underway soon, then MNGA will set up to re-test or possibly take out its next major overhead resistance levels at $2.40 to its 52-week high at $2.45.