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3 Stocks Under $10 Making Big Moves - views
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 today.
Horizon Pharma (HZNP) is a biopharmaceutical company that is developing and commercializing innovative medicines to target unmet therapeutic needs in arthritis, pain and inflammatory diseases. This stock closed up 5.8% to $2.35 on Thursday.
Thursday's Range: $2.22-$2.37
52-Week Range: $1.97-$8.72
Three-Month Average Volume: 508,732
From a technical perspective, HZNP ripped higher here back above its 50-day moving average of $2.31 with above-average volume. This move is quickly pushing shares of HZNP within range of triggering a near-term breakout trade. That trade will hit if HZNP manages to take out some near-term overhead resistance levels at $2.52 to $2.58 and then once it clears more resistance at 2.78 to $2.85 with high volume.
Traders should now look for long-biased trades in HZNP as long as it’s trending above some key near-term support levels at $2.20 to $2.16 and then once it sustains a move or close above those breakout levels with volume that hits near or above 508,732 shares. If that breakout triggers soon, then HZNP will set up to re-test or possibly take out its next major overhead resistance levels at $3.50 to its 200-day moving average at $3.67.
Rigel Pharmaceuticals (RIGL) is a clinical-stage drug development company that discovers and develops novel, small-molecule drugs for the treatment of inflammatory/autoimmune diseases, as well as for certain cancers and metabolic diseases. This stock closed up 6.4% to $7.06 on Thursday.
Thursday's Range: $6.63-$7.06
52-Week Range: $5.37-$11.44
Three-Month Average Volume: 557,305
From a technical perspective, RIGL ripped higher here back above its 50-day moving average of $6.79 with lighter-than-average volume. This move is quickly pushing shares of RIGL within range of triggering a major breakout trade. That trade will hit if RIGL manages to take out some near-term overhead resistance at $7.57 with high volume.
Traders should now look for long-biased trades in RIGL as long as it’s trending above some key near-term support levels at $6.60 to $6.38 and then once it sustains a move or close above $7.57 with volume that hits near or above 557,305 shares. If that breakout triggers soon, then RIGL will set up to re-fill some of its previous gap down zone from last December that started near $8.50.
FAB Universal (FU) provides software products and services that focus on speech recognition and text-to-speech technology, podcasting and the home health care industry. This stock closed up 10% to $3.70 on Thursday.
Thursday's Range: $3.47-$3.90
52-Week Range: $1.90-$5.70
Three-Month Average Volume: 36,600
From a technical perspective, FU spiked dramatically higher here right off its 200-day moving average of $3.44 with above-average volume. This stock has been trading in a consolidation pattern for the last three months, with shares moving between $2.85 on the downside and $4 on the upside. This move is now quickly pushing shares of FU within range of triggering a major breakout trade. That trade will hit if FU manages to take out the upper-end of that sideways trading pattern at $4 with high volume.
Traders should now look for long-biased trades in FU as long as it’s trending above its 50-day at $3.37 and then once it sustains a move or close above $4 with volume that hits near or above 199,092 shares. If that breakout triggers soon, then FU will set up to re-test or possibly take out its next major overhead resistance levels at $4.50 to $5. Any high-volume move above $5 would then put $5.70 into range for shares of FU.
To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Windermere, Fla., 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.