4 Stocks Under $10 to Trade for Breakouts

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

>>5 Stocks Under $10 Set to Soar

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.

Empresa Distribuidora y Comercializadora Norte

Empresa Distribuidora y Comercializadora Norte ( EDN) distributes and sells electricity in the north-eastern region of greater Buenos Aires. This stock closed up 3.9% to $5.75 a share in Thursday's trading session.

Thursday's Range: $5.56-$5.75
52-Week Range: $1.65-$7.03
Thursday's Volume: 51,000
Three-Month Average Volume: 78,734

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From a technical perspective, EDN trended higher here right above some near-term support at $5.30 with lighter-than-average volume. This move is quickly pushing shares of EDN within range of triggering a near-term breakout trade. That trade will hit if EDN manages to take out some near-term overhead resistance levels at $5.93 to $6 with high volume.

Traders should now look for long-biased trades in EDN as long as it's trending above some key near-term support levels at $5.30 or at $5, and then once it sustains a move or close above those breakout levels with volume that hits near or above 78,734 shares. If that breakout hits soon, then EDN will set up to re-test or possibly take out its next major overhead resistance levels at $6.43 to its 52-week high at $7.03.

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