Stock Quotes in this Article: WSTL, ARCO

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Big Trades to Profit During the Fed's QE Pay Cut

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.

>>5 Stocks With Big Insider Buying

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

Westell Technologies

Westell Technologies (WSTL), through its subsidiaries, designs, manufactures and distributes telecommunications products to telephone companies and other telecommunications service providers. This stock closed up 10.2% to $3.77 a share in Thursday's trading session.

Thursday's Range: $3.46-$3.92

52-Week Range: $1.75-$4.90

Thursday's Volume: 403,000

Three-Month Average Volume: 239,516

From a technical perspective, WSTL jumped sharply higher here right above some near-term support at $3.27 with above-average volume. This move briefly pushed shares of WSTL back above its 50-day moving average of $3.82, after the stock tagged an intraday high of $3.92. Shares of WSTL closed just below that level at $3.77. This spike is now starting to push shares of WSTL within range of triggering a major breakout trade. That trade will hit if WSTL manages to take out Thursday's high of $3.92 to some more key overhead resistance levels at $4.07 to $4.20 with high volume.

Traders should now look for long-biased trades in WSTL as long as it's trending above Thursday's low of $3.46 or above more support at $3.27 and then once it sustains a move or close above those breakout levels with volume that hits near or above 239,516 shares. If that breakout hits soon, then WSTL will set up re-test or possibly take out its 52-week high at $4.90.

Arcos Dorados

Arcos Dorados (ARCO) is an Argentina-based company engaged in the operation of McDonald's franchisees. This stock closed up 4.1% to $9.31 a share in Thursday's trading session.

Thursday's Range: $8.93-$9.36

52-Week Range: $8.74-$15.52

Thursday's Volume: 3.68 million

Three-Month Average Volume: 1 million

From a technical perspective, ARCO spiked notably higher here right above its 52-week low of $8.93 with monster upside volume. This stock has been downtrending badly for the last two months, with shares dropping from its high of $12.48 to its low of $8.74. During that downtrend, shares of ARCO have been consistently making lower highs and lower lows, which is bearish technical price action. That move has now pushed shares of ARCO into oversold territory, since its current relative strength index reading is 29.65. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher from.

Traders should now look for long-biased trades in ARCO as long as it's trending above its 52-week low of $8.74 and then once it sustains a move or close above Thursday's high of $9.36 to some more near-term overhead resistance at $9.75 with volume that hits near or above 1 million shares. If we get that move soon, then ARCO will set up to re-test or possibly take out its next major overhead resistance levels at $10.50 to its 50-day moving average of $11.30.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:







Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com.

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.