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.
BG Medicine (BGMD), a diagnostics company, develops and commercializes novel cardiovascular diagnostic tests to address unmet medical needs in the U.S. This stock closed up 3.9% to $1.05 in Tuesday's trading session.
Tuesday's Range: $1.00-$1.05
52-Week Range: $0.55-$2.42
Tuesday's Volume: 187,000
Three-Month Average Volume: 1.89 million
From a technical perspective, BGMD ripped higher here right above some near-term support at 96 cents per share with lighter-than-average volume. This stock recently formed a double bottom chart pattern at 96 cents per share. Following that bottom, shares of BGMD have started to spike higher off that support level and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if BGMD manages to take out both its 50-day at $1.06 and its 200-day at $1.09 with high volume.
Traders should now look for long-biased trades in BGMD as long as it's trending above major support at 96 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.89 million shares. If that breakout gets underway soon, then BGMD will set up to re-test or possibly take out its next major overhead resistance levels at $1.24 to $1.30. Any high-volume move above those levels will then give BGMD a chance to tag $1.40 to $1.50.