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.
Novatel Wireless (NVTL) provides wireless broadband access solutions for the mobile communications market worldwide. This stock closed up 7.4% to $2.02 in Tuesday's trading session.
Tuesday's Range: $1.82-$2.05
52-Week Range: $1.51-$4.43
Tuesday's Volume: 156,000
Three-Month Average Volume: 180,882
From a technical perspective, NVTL ripped sharply higher here right above its 50-day moving average of $1.78 with decent upside volume flows. This sharp spike higher on Tuesday is quickly pushing shares of NVTL within range of triggering a near-term breakout trade. That trade will hit if NVTL manages to take out some key overhead resistance levels at $2.11 to $2.18 and then once it clears is 200-day moving average of $2.25 with high volume.
Traders should now look for long-biased trades in NVTL as long as it's trending above its 50-day at $1.78 and then once it sustains a move or close above those breakout levels with volume that hits near or above 180,882 shares. If that breakout materializes soon, then NVTL will set up to re-fill some of its previous gap-down-day zone from March that started at $2.85.