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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Stocks Under $10 to Trade for Breakouts

Mad Catz Interactive

Mad Catz Interactive (MCZ) designs, manufactures, markets, sells and distributes accessories for video game platforms, personal computers, smart phones and other smart devices. This stock closed up 6.3% to 54 cents per share in Tuesday's trading session.

Tuesday's Range: $0.49-$0.57
52-Week Range: $0.33-$0.90
Tuesday's Volume: 2.03 million
Three-Month Average Volume: 453,268

From a technical perspective, MCZ spiked sharply higher here right above its 50-day moving average of 47 cents per share with heavy upside volume. This stock spike on Tuesday is quickly pushing shares of MCZ within range of triggering a big breakout trade. That trade will hit if MCZ manages to take out Tuesday's high of 57 cents per share to more key overhead resistance at 59 cents per share with high volume.

Traders should now look for long-biased trades in MCZ as long as it's trending above its 50-day at 47 cents per share or above more key support at 46 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 453,268 shares. If that breakout hits soon, then MCZ will set up to re-test or possibly take out its next major overhead resistance levels 65 cents per share to 75 cents per share.

Exelixis

Exelixis (EXEL), a biotechnology company, develops small molecule therapies for the treatment of cancer in the U.S. This stock closed up 3% to $3.73 in Tuesday's trading session.

Tuesday's Range: $3.60-$3.75
52-Week Range: $3.37-$8.41
Tuesday's Volume: 3.89 million
Three-Month Average Volume: 5.24 million

From a technical perspective, EXEL trended higher here right above some near-term support at $3.50 with lighter-than-average volume. This spike higher on Tuesday is starting to push shares of EXEL within range of triggering a big breakout trade. That trade will hit if EXEL manage to take out Tuesday's high of $3.75 to some more near-term overhead resistance at $3.77 with high volume.

Traders should now look for long-biased trades in EXEL as long as it's trending above some key near-term support levels at $3.50 or at $3.37 and then once it sustains a move or close above those breakout levels with volume that hits near or above 5.24 million shares. If that breakout starts soon, then EXEL will set up to re-test or possibly take out its next major overhead resistance level at its gap-down-day high of $4.50. Any high-volume move above $4.50 will then give EXEL a chance to re-fill some of that gap that started just above $6.50.

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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