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.
Emulex (ELX) provides network connectivity, monitoring, and management products for networks that support enterprise, cloud, government, and telecommunications worldwide. This stock closed up 2.5% to $5.63 in Thursday's trading session.
Thursday's Range: $5.43-$5.66
52-Week Range: $4.51-$5.66
Thursday's Volume: 1.68 million
Three-Month Average Volume: 1.40 million
From a technical perspective, ELX trended higher here right off its 50-day moving average of $5.48 with above-average volume. This move to the upside on Thursday sent shares of ELX into its previous gap-down-day zone from earlier this month that started at around $5.88. Shares of ELX are now quickly moving within range of triggering a major breakout trade. That trade will hit if ELX manages to take out Thursday's intraday high of $5.66 and then once it clears some key near-term overhead resistance levels at $5.88 to $6.09 with high volume.
Traders should now look for long-biased trades in ELX as long as it's trending above Thursday's intraday low of $5.43 or above more near-term support at $5.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.40 million shares. If that breakout triggers soon, then ELX will set up to re-fill some of its previous gap-down-day zone from April that started near $7.25.
ReneSola (SOL), through its subsidiaries, manufactures and sells various solar power products. It operates through two segments, Wafer, and Cell and Module. This stock closed up 4% to $2.56 a share in Thursday's trading session.
Thursday's Range: $2.47-$2.58
52-Week Range: $2.18-$6.00
Thursday's Volume: 1.53 million
Three-Month Average Volume: 1.85 million
From a technical perspective, SOL trended sharply higher here with decent upside volume. This strong trend to the upside on Thursday is quickly pushing shares of SOL within range of triggering a major breakout trade. That trade will hit if SOL manages to take out its 50-day moving average of $2.61 to some more key overhead resistance levels at $2.70 to $2.79 with high volume.
Traders should now look for long-biased trades in SOL as long as it's trending above some key near-term support levels at $2.40 or at $2.29 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.85 million shares. If that breakout kicks off soon, then SOL will set up to re-test or possibly take out its next major overhead resistance levels at $3 to $3.22, or even its 50-day moving average of $3.35.