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.
AcelRx Pharmaceuticals (ACRX), a development stage specialty pharmaceutical company, focuses on the development and commercialization of therapies for the treatment of acute and breakthrough pain. This stock closed up 6.7% to $6.96 in Thursday's trading session.
Thursday's Range: $6.44-$7.11
52-Week Range: $6.04-$13.65
Thursday's Volume: 2.35 million
Three-Month Average Volume: 1.02 million
From a technical perspective, ACRX ripped sharply higher here with strong upside volume flows. This stock recently gapped down big from $11.38 to its recent low of $6.11 with heavy downside volume. Following that gap, shares of ACRX have started to rebound sharply higher with decent upside volume flows. This rebound is quickly pushing shares of ACRX within range of triggering a near-term breakout trade. That trade will hit if ACRX manages to take out Thursday's intraday high of $7.11 to its gap-down-day high of $7.33 with high volume.
Traders should now look for long-biased trades in ACRX as long as it's trending above Thursday's intraday low of $6.44 or above that recent gap low of $6.11 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.02 million shares. If that breakout hits soon, then ACRX will set up to re-fill some of that previous gap-down-day zone from this week that started at $11.38.