3 Biotech 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.

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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.

>>Cheap Trades: 5 Breakout Stocks Under $10

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

Sequenom (SQNM), a life sciences company, provides genetic analysis solutions in the U.S. and internationally. This stock closed up 1.6% to $2.40 a share in Tuesday's trading session.

Tuesday's Range: $2.33-$2.43
52-Week Range: $1.65-$4.90
Tuesday's Volume: 1.19 million
Three-Month Average Volume: 1.92 million

From a technical perspective, SQNM spiked modestly higher here right off its 50-day moving average of $2.33 with lighter-than-average volume. This stock has been uptrending a bit over the last few weeks, with shares moving higher from its low of $2.02 to its recent high of $2.46. During that move, shares of SQNM have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SQNM within range of triggering a big breakout trade. That trade will hit if SQNM manages to take out Tuesday's high of $2.43 to some more near-term overhead resistance at $2.46 with high volume.

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