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.
Biota Pharmaceuticals (BOTA), a biopharmaceutical company, focuses on the discovery and development of anti-infective products in Australia. This stock closed up 13.2% to $3.34 in Tuesday's trading session.
Tuesday's Range: $2.95-$3.37
52-Week Range: $2.35-$7.07
Tuesday's Volume: 134,000
Three-Month Average Volume: 147,256
From a technical perspective, BOTA exploded higher here right off its 50-day moving average of $2.94 with decent upside volume flows. This sharp spike to the upside on Tuesday pushed shares of BOTA into breakout territory, since the stock took out some near-term overhead resistance levels at $3.12 to $3.21. Shares of BOTA are now quickly moving within range of triggering another big breakout trade. That trade will hit if BOTA manages to take out Tuesday's intraday high of $3.37 to some more key overhead resistance at $3.52 with high volume.
Traders should now look for long-biased trades in BOTA as long as it's trending above $3.12 or above its 50-day at $2.94 and then once it sustains a move or close above those breakout levels with volume that hits near or above 147,256 shares. If that breakout hits soon, then BOTA will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $4.33 to its gap-down-day high from April at around $4.50.