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.
Elbit Imaging (EMITF), together with its subsidiaries, engages in commercial and entertainment centers, hotels, medical industries, residential projects and fashion apparel businesses. This stock closed up 3.1% to 23 cents per share in Tuesday's trading session.
Tuesday's Range: $0.22-$0.23
52-Week Range: $0.16-$2.47
Tuesday's Volume: 658,000
Three-Month Average Volume: 1 million
From a technical perspective, EMITF jumped higher here with lighter-than-average volume. This spike higher on Tuesday is starting to push shares of EMITF within range of triggering a big breakout trade. That trade will hit if EMITF manages to take out some near-term overhead resistance at 24 cents per share with high volume.
Traders should now look for long-biased trades in EMITF as long as it's trending above some key near-term support at 20 cents per share and then once it sustains a move or close above 23 cents per share with volume that hits near or above 1 million shares. If that breakout materializes soon, then EMITF will set up to re-test or possibly take out its next major overhead resistance levels at 28 cents per share to its 50-day moving average of 33 cents per share.
Walter Energy (WLT) produces and exports metallurgical coal for the steel industry. This stock closed up 4.8% to $8.18 in Tuesday's trading session.
Tuesday's Range: $7.66-$8.25
52-Week Range: $7.07-$21.48
Tuesday's Volume: 8.51 million
Three-Month Average Volume: 6.83 million
From a technical perspective, WLT spiked sharply higher here right above its recent low of $7.20 with strong upside volume. This stock recently formed a double bottom chart pattern at $7.07 to $7.20. Since forming that bottom, shares of WLT have started to spike higher and the stock is now quickly moving within range of triggering a near-term breakout trade. That trade will hit if WLT manages to take out Tuesday's high of $8.25 to some more near-term overhead resistance at $8.65 with high volume.
Traders should now look for long-biased trades in WLT as long as it's trending above those double bottom support levels at $7.20 to $7.07 and then once it sustains a move or close above those breakout levels with volume that hits near or above 6.83 million shares. If that breakout hits soon, then WLT will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $9.33 to $9.40. Any high-volume move above those levels will then give WLT a chance to tag $10 to $11.
Midstates Petroleum (MPO) is engaged in the exploration, development and production of oil, natural gas liquids and natural gas in the U.S. This stock closed up 6.5% to $5.38 Tuesday's trading session.
Tuesday's Range: $5.07-$5.40
52-Week Range: $4.13-$7.04
Tuesday's Volume: 834,000
Three-Month Average Volume: 776,427
From a technical perspective, MPO ripped higher here right above its 50-day moving average of $4.86 with above-average volume. This move is quickly pushing shares of MPO within range of triggering a near-term breakout trade. That trade will hit if MPO manages to take out its 200-day moving average of $5.44 to more near-term overhead resistance at $5.53 with high volume.
Traders should now look for long-biased trades in MPO as long as it's trending above Tuesday's low of $5.03 or above its 50-day at $4.86 and then once it sustains a move or close above those breakout levels with volume that hits near or above 776,427 shares. If that breakout triggers soon, then MPO will set up to re-test or possibly take out its next major overhead resistance levels at $5.98 to $6.41.
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 includingCNBC.com and Forbes.com.
You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.