DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.
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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.
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With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.
Ariad Pharmaceuticals
Ariad Pharmaceuticals (ARIA), an oncology company, is engaged in the discovery, development and commercialization of medicines for cancer patients. This stock closed up 5.7% to $8.52 in Tuesday's trading session.
Tuesday's Range: $8.02-$8.55
52-Week Range: $2.15-$23.00
Tuesday's Volume: 11.92 million
Three-Month Average Volume: 20.55 million
From a technical perspective, ARIA spiked sharply higher here right off its 50-day moving average of $8.04 with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $7.36 to $7.38 and shares of ARIA have rallied higher off those levels. That rally has now pushed ARIA within range of triggering a near-term breakout trade. That trade will hit if ARIA manages to take out some near-term overhead resistance at $8.56 with high volume.
Traders should now look for long-biased trades in ARIA as long as it's trending above those double bottom support levels and then once it sustains a move or close above $8.56 with volume that hits near or above 20.55 million shares. If that breakout gets underway soon, then ARIA will set up to re-test or possibly take out its next major overhead resistance levels at $9.13 to $9.22. Any high-volume move above those levels will then give ARIA a chance to tag $9.83 to its 200-day moving average of $11.22.
Verso Paper
Verso Paper (VRS) produces and sells coated papers in the U.S. This stock closed up 6.2% to $3.07 in Tuesday's trading session.
Tuesday's Range: $2.76-$3.24
52-Week Range: $0.52-$5.55
Tuesday's Volume: 1.90 million
Three-Month Average Volume: 832,287
From a technical perspective, VRS ripped sharply higher here and broke out above some near-term overhead resistance levels at $2.98 to $3 with heavy upside volume. This stock closed just a bit off its intraday high of $3.24 after it finished the trading session at $3.07. Market players should now look for a continuation move higher in the short-term if VRS can manage to take out Tuesday's high of $3.24 to some more key near-term overhead resistance levels at $3.32 to $3.40 with strong volume.
Traders should now look for long-biased trades in VRS as long as it's trending above its 50-day at $2.62 or above more near-term support at $2.50 and then once it sustains a move or close above $3.24 to $3.40 with volume that hits near or above 832,287 shares. If that move gets started soon, then VRS will set up to re-test or possibly take out its next major overhead resistance levels at $4 to $4.50.
Hyperdynamics
Hyperdynamics (HDY), an independent oil and gas exploration company, is engaged in the acquisition, exploration and development of oil and gas properties in the Republic of Guinea, Northwest Africa. This stock closed up 12% to $1.95 in Tuesday's trading session.
Tuesday's Range: $1.71-$1.95
52-Week Range: $1.13-$7.00
Tuesday's Volume: 273,000
Three-Month Average Volume: 271,169
From a technical perspective, HDY spiked sharply higher here right off some near-term support at $1.70 with above-average volume. This stock recently gapped down sharply from over $5 to $1.13 with heavy downside volume. Following that move, shares of HDY have started to trend sideways between $1.70 on the downside and $2.42 on the upside. Market players should now look for a continuation move higher in the short-term if HDY manages to take out Tuesday's high of $1.95 to more near-term overhead resistance at $2.15 with high volume.
Traders should now look for long-biased trades in HDY as long as it's trending above support at $1.70 and then once it sustains a move or close above $1.95 to $2.15 with volume that hits near or above 271,169 shares. If move starts soon, then HDY will set up to re-test or possibly take out its next major overhead resistance levels at its gap-down-day high of $2.42. Any high-volume move above that level will then give HDY a chance to re-fill some of its previous gap that stared above $5.
Plug Power
Plug Power (PLUG), an alternative energy technology provider, engages in the design, development, commercialization and manufacture of fuel cell systems for the industrial off-road markets worldwide. This stock closed up 6.2% to $7.54 in Tuesday's trading session.
Tuesday's Range: $6.85-$7.68
52-Week Range: $0.15-$11.72
Tuesday's Volume: 41.49 million
Three-Month Average Volume: 49.77 million
From a technical perspective, PLUG spiked sharply higher here right above some near-term support at $6.21 with decent upside volume. This spike higher on Tuesday is starting to push shares of PLUG within range of triggering a near-term breakout trade. That trade will hit if PLUG manages to clear some near-term overhead resistance levels at $8 to $8.48 with strong upside volume.
Traders should now look for long-biased trades in PLUG as long as it's trending above Tuesday's low of $6.85 or above some near-term support at $6.21 and then once it sustains a move or close above those breakout levels with volume that hits near or above 49.77 million shares. If that breakout triggers soon, then PLUG will set up to tag $10 or even its 52-week high at $11.72.
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.
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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.
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