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.

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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.

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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.

ReneSola

ReneSola (SOL) operates as a brand and technology provider of solar photovoltaic products. This stock closed up 7.6% to $4.20 a share in Tuesday's trading session.

Tuesday's Range: $3.93-$4.27
52-Week Range: $1.25-$6.00
Tuesday's Volume: 5.13 million
Three-Month Average Volume: 3.13 million

From a technical perspective, SOL ripped higher here right off its 200-day moving average of $3.88 with above-average volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $3.04 to its recent high of $4.37. During that uptrend, shares of SOL have been consistently making higher lows and higher highs, which is bullish technical price action. This spike higher on Tuesday is now starting to push shares of SOL within range of triggering a big breakout trade. That trade will hit if SOL manages to take out some key overhead resistance levels at $4.37 to $4.46 and then once it takes out $4.36 to $4.75 with high volume.

Traders should now look for long-biased trades in SOL as long as it's trending above its 200-day at $3.88 or above its 50-day at $3.69 and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.13 million shares. If that breakout triggers soon, then SOL will set up to re-test or possibly take out its next major overhead resistance levels at $5.20 to $5.50, or even its 52-week high at $6.

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