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.
Doral Financial (DRL), operates as the bank holding company for Doral Bank that provides retail banking services to general public and institutions. This stock closed up 4.2% to $4.96 in Tuesday's trading session.
Tuesday's Range: $4.64-$5.02
52-Week Range: $1.87-$24.74
Tuesday's Volume: 370,000
Three-Month Average Volume: 1.49 million
From a technical perspective, DRL bounced sharply higher here right off its 50-day moving average of $4.73 and right above some key near-term support at $4.53 with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $4.61 to $4.53. Following that bottom, shares of DRL have now started to spike higher and move back above its 50-day moving average. Market players should now look for a continuation move to the upside in the short-term if DRL manages to take out Tuesday's intraday high of $5.02 to around $5.50 with high volume.