4 stocks under $10 making big moves

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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.

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.

Radio One

Radio One is a multimedia company that primarily targets African-American and urban consumers. This stock closed up 5.8 percent to $2.35 in Thursday's trading session.

Thursday's Range: $2.21-$2.40
52-Week Range: $0.68-$2.66
Thursday's Volume: 258,000
Three-Month Average Volume: 112,595

From a technical perspective, Radio One ripped higher here back above its 50-day moving average of $2.27 with above-average volume. This stock recently formed a triple bottom chart pattern at $2.10, $2.11 and $2.07. Following that bottom, shares of Radio One have started bounce sharply higher and move within range of triggering a major breakout trade. That trade will hit if the stock can manage to take out some near-term overhead resistance levels at $2.46 to its 52-week high at $2.66 with high volume.

Traders should now look for long-biased trades in Radio One as long as it's trending above some near-term support levels at $2.10 to $2.07 and then once it sustains a move or close above those breakout levels with volume that hits near or above 112,595 shares. If that breakout triggers soon, then the stock will set up to enter new 52-week-high territory above $2.66, which is bullish technical price action. Some possible upside targets off that breakout are $3 to $4.

Rite Aid

Rite Aid operates a retail drugstore chain in the U.S. This stock closed up 4.3 percent to $3.13 in Thursday's trading session.

Thursday's Range: $3.03-$3.16
52-Week Range: $0.95-$3.21
Thursday's Volume: 35 million
Three-Month Average Volume: 22.88 million

From a technical perspective, Rite Aid spiked sharply higher here right above its 50-day moving average at $2.92 and into breakout territory above resistance at $3.09 with monster upside volume. This stock has been uptrending strong for the last month and change, with shares soaring higher from its low of $2.62 to its intraday high of $3.16. During that move, shares of Rite Aid have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of RAD within range of triggering a major breakout trade. That trade will hit if Rite Aid manages to take out its 52-week high at $3.21 with high volume.

Traders should now look for long-biased trades in RAD as long as it's trending above its 50-day at $2.92 or above more key support levels at $2.83 to $2.67,and then once it sustains a move or close above its 52-week high at $3.21 with volume that hits near or above 22.88 million shares. If that breakout triggers soon, then Rite Aid will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $4 to $5.

Cott

Cott is engaged in the production of beverages on behalf of retailers and distributors. This stock closed up 4.5 percent to $8.75 a share in Thursday's trading session.

Thursday's Range: $8.29-$8.84
52-Week Range: $7.24-$11.25
Thursday's Volume: 1.82 million
Three-Month Average Volume: 466,884

Augusts kicks off with a roar 6:37 PM ET Thu, 1 Aug 2013

From a technical perspective, the stock jumped higher here right above its 50-day moving average of $8.14 with monster upside volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $7.39 to its intraday high of $8.84. During that move, shares of Cott have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of Cott within range of triggering a major breakout trade. That trade will hit if the stock manages to take out some near-term overhead resistance levels at $8.84 to $9 with high volume.

Traders should now look for long-biased trades in Cott stock as long as it's trending above its 50-day at $8.14 and then once it sustains a move or close above those breakout levels with volume that hits near or above 466,884 shares. If that breakout hits soon, then COT will set up to re-test or possibly take out its next major overhead resistance levels at $9.50 to 10.25. Any high-volume move above $10.25 will then give Cott a chance to re-fill its previous gap-down zone from May that stared near $11.

Gerdau

Gerdau produces long steel and flat steel items through the process of fabrication in electrical furnaces from scrap metal and purchased pig iron, as well as by manufacturing steel from iron ore in the blast furnace. This stock closed up 4.2 percent to $6.61 in Thursday's trading session.

Thursday's Range: $6.45-$6.66
52-Week Range: $5.27-$10.82
Thursday's Volume: 9.98 million
Three-Month Average Volume: 6.10 million

From a technical perspective, the stock bounced sharply higher here right above some near-term support at $6.23 and above its 50-day moving average at $6.04 with monster upside volume. This stock has been uptrending strong for the last month and change, with shares pushing higher from its low of $5.27 to its intraday high of $6.66. During that uptrend, shares of Gerdau have been consistently making higher lows and higher highs, which is bullish technical price action. That move is now pushing shares of the stock within range of triggering a major breakout trade. That trade will hit if the stock manages to take out some near-term overhead resistance levels at $6.66 to $7.05 with high volume.

Traders should now look for long-biased trades in Gerdau as long as it's trending above some near-term support at $6.23 or above its 50-day at $6.04 and then once it sustains a move or close above those breakout levels with volume that hits near or above 6.10 million shares. If that breakout hits soon, then the stock will set up to re-test or possibly take out its next major overhead resistance levels at $7.88 to $8.28. Any high-volume move above those levels will then put its next major overhead resistance levels at $9 to $9.65 within range for shares of Gerdau.

—By TheStreet.com Contributor Roberto Pedone

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Disclosures:

At the time of publication, author had no positions in the stocks mentioned.

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