Stock Quotes in this Article: CHTP, DARA, OCLR

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

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.

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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.

Dara Biosciences

Dara Biosciences (DARA) is a specialty pharmaceutical company focused on the development and commercialization of oncology treatment and supportive care pharmaceutical products. This stock is trading up 15.2% to 92 cents per share in recent trading.

Today’s Range: $0.86-$0.98

52-Week Range: $0.62-$2.77

Volume: 2.5 million

Three-Month Average Volume: 79,554

Shares of Dara Biosciences are exploding higher today after news broke that the Helsinn Group of Switzerland announced that it has entered into an exclusive agreement with Dara for U.S. commercial rights to Gelclair, an FDA-cleared product indicated for the treatment of oral mucositis.

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From a technical perspective, DARA is skyrocketing here with monster volume. This move has pushed DARA into breakout territory, since the stock has moved above some near-term overhead resistance levels at 84 to 85 cents per share. At last check, DARA has hit an intraday high of 98 cents and volume is well above its three-month average action of 79,554 shares.

Traders should now look for long-biased trades in DARA once it triggers its next major breakout. That breakout will hit once DARA clears 98 cents and its 200-day moving average of $1.10 with high volume. Look for a sustained move or close above those levels with volume that’s near or above 79,554 shares. If that breakout triggers soon, then DARA will have a great chance of re-testing or possibly taking out its next major overhead resistance level at $1.40.

Oclaro

Oclaro (OCLR) provides high-performance core optical network components, modules and subsystems to global telecommunications equipment manufacturers. This stock is trading up 5.8% to $2.91 in recent trading.

Today’s Range: $2.75-$2.95

52-Week Range: $2.11-$5.10

Volume: 778,000

Three-Month Average Volume: 579,452

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From a technical perspective, OCLR is bouncing solidly here right near its 50-day moving average of $2.61 with above-average volume. This move has pushed OCLR into breakout territory, since the stock has started to push above some near-term overhead resistance levels at $2.80 to $2.83.

Traders should now look to play the next major breakout for OCLR. That breakout will hit once OCLR takes out some near-term overhead resistance levels at $3.10 to $3.15, and then when it clears its 200-day moving average of $3.26 with high volume. Traders should look for long-biased trades as long as OCLR is trending above $2.75 and then once it sustains a move or close above those breakout levels with volume that’s near or above 579,452 shares. If that breakout hits soon, then OCLR will have an excellent chance of hitting $3.75 to $4 in the near future.

Chelsea Therapeutics

Chelsea Therapeutics (CHTP) is a development stage pharmaceutical company that focuses on acquiring, developing and commercializing products for the treatment of a variety of human diseases. This stock is trading up 4.7% at $1.39 in recent trading.

Today’s Range: $1.26-$1.39

52-Week Range: $0.70-$5.74

Volume: 642,000

Three-Month Average Volume: 1.2 million

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From a technical perspective, CHTP is bouncing sharply to the upside here right off some near-term support at $1.20 with light volume. This move is starting to push CHTP within range of triggering a near-term breakout trade. That trade will hit once CHTP takes out some near-term overhead resistance levels at $1.48 to $1.54 with high volume.

Traders should now look for long-biased trades in CHTP as long as it’s trending above $1.20, and then once it sustains a move or close above those breakout levels with volume that’s near or above 1.2 million shares. If that breakout triggers soon, then CHTP will have a great chance of re-testing or possibly taking out its next major overhead resistance levels at $1.99 to $2.30, or possibly even its 200-day moving average at $2.71.

To see more stocks under-$10 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.


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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 stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.