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.
>>5 Big Stocks to Trade for Big Gains
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.
Sophiris Bio
Sophiris Bio (SPHS) is a clinical-stage biopharmaceutical company that develops and commercializes innovative products for the treatment of urological diseases. This stock closed up 5.1% to $4.51 in Tuesday's trading session.
Tuesday's Range: $4.25-$4.53
52-Week Range: $4.08-$17.68
Tuesday's Volume: 15,000
Three-Month Average Volume: 71,077
From a technical perspective, SPHS spiked higher here right above some near-term support at $4.08 with lighter-than-average volume. This stock has been trending sideways and consolidating for the last two months and change, with shares moving between $4.08 on the downside and $5.11 on the upside. Shares of SPHS are now starting to trend within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern. That breakout will hit if SPHS manages to take out some key near-term overhead resistance levels at $4.65 to $4.85 to some past overhead resistance at $5.11 with high volume.
Traders should now look for long-biased trades in SPHS as long as it's trending above Tuesday's low of $4.25 or above its 52-week low of $4.08 and then once it sustains a move or close above those breakout levels with volume that hits near or above 71,077 shares. If that breakout hits soon, then SPHS will set up to re-test or possibly take out its next major overhead resistance level at $5.91.
Zhone Technologies
Zhone Technologies (ZHNE) designs, develops and manufactures communications network equipment for telecommunications, wireless and cable operators worldwide. This stock closed up 5% to $3.95 in Tuesday's trading session.
Tuesday's Range: $3.70-$4.06
52-Week Range: $0.40-$4.58
Tuesday's Volume: 567,000
Three-Month Average Volume: 871,360
From a technical perspective, ZHNE trended higher here right above its 50-day moving average of $3.56 with lighter-than-average volume. This stock recently pulled back off its 52-week high of $4.58 to its recent low of $3.61. Shares of ZHNE have now started to find some buying interest each time it has traded near its 50-day over the last few weeks. This action is now starting to push shares of ZHNE within range of triggering a major breakout trade. That trade will hit if ZHNE manages to take out some key near-term overhead resistance at $4.10 and then once it clears more resistance at $4.48 to its 52-week high at $4.58 with high volume.
Traders should now look for long-biased trades in ZHNE as long as it's trending above its 50-day at $3.56 or above more support at $3.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 871,360 shares. If that breakout hits soon, then ZHNE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $5.50 to $6.50
Aeropostale
Aeropostale (ARO) operates as a mall-based retailer of casual apparel and accessories for young women and men in the U.S. This stock closed up 3.9% to $9.51 in Tuesday's trading session.
Tuesday's Range: $9.07-$9.61
52-Week Range: $7.78-$17.10
Tuesday's Volume: 3.37 million
Three-Month Average Volume: 3.74 million
From a technical perspective, ARO trended higher here right off its 50-day moving average of $9.24 with solid upside volume. This move is quickly pushing shares of ARO within range of triggering a near-term breakout trade. That trade will hit if ARO manages to take out some key near-term overhead resistance levels at $9.68 to $9.92 with high volume.
Traders should now look for long-biased trades in ARO as long as it's trending above some near-term support at $9 or above $8.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.74 million shares. If that breakout hits soon, then ARO will set up to re-test or possibly take out its next major overhead resistance level at $10.47. Any high-volume move above $10.47 will then give ARO a chance to tag $11 to $11.50.
Dynavax Technologies
Dynavax Technologies (DVAX), a clinical-stage biopharmaceutical company, discovers and develops novel products to prevent and treat infectious and inflammatory diseases. This stock closed up 5.7% to $1.45 in Tuesday's trading session.
Tuesday's Range: $1.39-$1.47
52-Week Range: $0.98-$3.39
Tuesday's Volume: 12.96 million
Three-Month Average Volume: 2.76 million
From a technical perspective, DVAX trended higher here with monster upside volume. This move briefly pushed shares of DVAX into breakout territory, since the stock flirted with some key overhead resistance levels at $1.43 to $1.46. Shares of DVAX closed just below the latter at $1.45. Market players should now look for a continuation move higher in the short-term if DVAX can manage to take out Tuesday's high of $1.47 to some key past resistance at $1.50 with high volume.
Traders should now look for long-biased trades in DVAX as long as it's trending above some near-term support at $1.30 or above its 50-day at $1.23 and then once it sustains a move or close above $1.47 to $1.50 with volume that hits near or above 2.76 million shares. If we get that move soon, then DVAX will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day of $1.73 to its gap down day high from June just above $1.80. Any high-volume move above $1.80 will then give DVAX a chance to re-fill some of its previous gap down zone that started at $2.60.
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 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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