2 Biotech Stocks Under $10 Triggering Breakouts

DELAFIELD, Wis. ( Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Rocket Stocks to Buy This Week

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 today.

Transition Therapeutics

Transition Therapeutics ( TTHI) is a product-focused biopharmaceutical company, developing therapeutics for disease indications with markets. This stock closed up 6% to $5.09 in Tuesday's trading session.

Tuesday's Range: $4.84-$5.09
52-Week Range: $1.90-$5.30
Thursday's Volume: 86,000
Three-Month Average Volume: 36,691

>>5 Stocks Poised for Breakouts

From a technical perspective, TTHI ripped sharply higher here right off some near-term support at $4.80 with above-average volume. This move is quickly pushing shares of TTHI within range of triggering a major breakout trade. That trade will hit if TTHI manages t take out Tuesday's high of $5.10 and then once it takes out its 52-week high at $5.30 with high volume.

Traders should now look for long-biased trades in TTHI as long as it's trending above its 50-day at $4.46 or above more support at $4.20 and then once it sustains a move or close above those breakout levels with volume that hits near or above 36,691 shares. If that breakout hits soon, then TTHI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $6 to $7, or even $8.

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