2 Stocks Under $10 to Trade

DELAFIELD, Wis. (Stockpickr) -- These under-$10 stocks were spiking higher on Wednesday. Here's how to trade them today.

Quantum Fuel Systems Technologies Worldwide (QTWW) engages in the design, development, and production of compressed natural gas storage tanks and packaged fuel systems, and other fuel and propulsion systems for alternative fuel vehicle applications in the U.S. and internationally. This stock closed up 2.8% to $8.33 in Wednesday's trading session.

Wednesday's Range: $8.00-$8.43
52-Week Range: $1.85-$9.30
Thursday's Volume: 577,000
Three-Month Average Volume: 724,174

From a technical perspective, QTWW spiked notably higher here right above its 50-day moving average of $7.74 with lighter-than-average volume. This stock has been trending range bound over the last two months, with shares moving between $6.85 on the downside and $9.30 on the upside. Shares of QTWW are now starting to spike higher and move within range of triggering a big breakout trade above the upper-end of its sideways trading chart pattern. That trade will hit if QTWW manages to take out some key overhead resistance levels at $8.48 to $9 and then once it busts above its 52-week high at $9.30 with high volume.

Traders should now look for long-biased trades in QTWW as long as it's trending above its 50-day at $7.74 and then once it sustains a move or close above those breakout levels with volume that hits near or above 724,174 shares. If that breakout hits soon, then QTWW will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $10 to $12.

TravelCenters of America (TA), together with its subsidiaries, operates and franchises travel centers primarily along the U.S. interstate highway system. This stock closed up 5.3% to $8.81 a share in Wednesday's trading session.

Wednesday's Range: $8.33-$8.87
52-Week Range: $6.70-$12.50
Thursday's Volume: 249,000
Three-Month Average Volume: 416,321

From a technical perspective, TA spiked notably higher here and broke out above some near-term overhead resistance levels at $8.50 to $8.72 with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $8.01 to $8.02. Following that bottom, shares of TA have started to trend higher and break out above some key overhead resistance levels. That move has now pushed shares of TA within range of triggering another big breakout trade. That trade will hit if TA manages to take out both its 50-day at $8.93 to its 200-day at $9.05 and then once it clears more resistance at $9.23 with high volume.

Traders should now look for long-biased trades in TA as long as it's trending above Wednesday's low of $8.33 and then once it sustains a move or close above those breakout levels with volume that hits near or above 416,321 shares. If that breakout triggers soon, then TA will set up to re-test or possibly take out its next major overhead resistance levels $9.80 to $10.50.

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.

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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