Stocks that are making large moves such as 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.
Wave Systems (WAVX) develops, produces and markets products for hardware-based digital security in the U.S. and internationally. This stock closed up 5.4% to $1.56 in Tuesday's trading session.
Tuesday's Range: $1.46-$1.62
52-Week Range: $0.69-$2.32
Tuesday's Volume: 2.45 million
Three-Month Average Volume: 1.54 million
From a technical perspective, WAVX ripped sharply higher here right above some near-term support at around $1.40 with strong upside volume flows. This stock recently broke out to the upside of its recent range, which saw the stock trend between $1.35 on the downside and right around $1.50 on the upside. Market players should now look for a continuation move to the upside in the short-term if WAVX manages to take out Tuesday's intraday high of $1.62 to some more near-term overhead resistance at $1.63 with high volume.
Traders should now look for long-biased trades in WAVX as long as it's trending above Tuesday's intraday low of $1.46 or above more support at $1.35 and then once it sustains a move or close above $1.62 to $1.63 with volume that hits near or above 1.54 million shares. If that move gets started soon, then WAVX will set up to re-test or possibly take out its next major overhead resistance level at $1.90. Any high-volume move above $1.90 will then give WAVX a chance to re-fill some of its previous gap-down-day zone from June that started at $2.30.