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.

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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.

Amarin

Amarin (AMRN), a biopharmaceutical company, focuses on the development and commercialization therapeutic products for the treatment for cardiovascular diseases in the U.S. This stock closed up 5.7% to $1.85 in Thursday's trading session.

Thursday's Range: $1.71-$1.85
52-Week Range: $1.36-$7.98
Thursday's Volume: 2.54 million
Three-Month Average Volume: 4.99 million

From a technical perspective, AMRN spiked sharply higher here back above its 50-day moving average of $1.82 with lighter-than-average volume. This spike is quickly pushing shares of AMRN within range of triggering a major breakout trade. That trade will hit if AMRN manages to take out Thursday's high of $1.85 to some more key overhead resistance at $1.99 with high volume.

Traders should now look for long-biased trades in AMRN as long as its trending above Thursday's low of $1.71 or above more near-term support levels at $1.68 to $1.60 and then once it sustains a move or close above those breakout levels with volume that hits near or above 4.99 million shares. If that breakout materializes soon, then AMRN will set up to re-fill some of its previous gap-down-day zone from January that started near $2.50. Any high-volume move above $2.75 will then give AMRN a chance to re-fill some of another previous gap-down-day zone last October that started above $4.50.

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