3 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.

>>3 Stocks Rising on Big Volume

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

Exelixis (EXEL), a biotechnology company, develops small molecule therapies for the treatment of cancer in the U.S. This stock closed up 2.9% to $7.38 in Tuesdays trading session.

Tuesday's Range: $7.17-$7.51
52-Week Range: $4.33-$8.41
Tuesday's Volume: 2.53 million
Three-Month Average Volume: 2.98 million

From a technical perspective, EXEL spiked notably higher here right above its 50-day moving average of $7.02 with decent upside volume. This move is quickly pushing shares of EXEL into range of triggering a near-term breakout trade. That trade will hit if EXEL manages to take out Tuesday's high of $7.51 to some more near-term overhead resistance at $7.75 with high volume.

Traders should now look for long-biased trades in EXEL as long as it's trending above its 50-day at $7.02 or above more near-term support at $6.80 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.98 million shares. If that breakout gets underway soon, then EXEL will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high at $8.41 to $9.

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