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.

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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.

Magnegas

Magnegas (MNGA), an alternative energy company, hydrogen based alternative fuel through the gasification of carbon-rich liquids in the U.S. and internationally. This stock closed up 8.3% to $1.55 in Tuesdays trading session.

Tuesday's Range: $1.42-$1.60
52-Week Range: $0.40-$2.45
Tuesday's Volume: 2.50 million
Three-Month Average Volume: 2.74 million

From a technical perspective, MNGA ripped higher here right off some near-term support at $1.40 with decent upside volume. This spike higher on Tuesday is starting to push shares of MNGA within range of triggering a big breakout trade. That trade will hit if MNGA manages to take out Tuesday's high of $1.60 to some more near-term overhead resistance at $1.82 with high volume.

Traders should now look for long-biased trades in MNGA as long as it's trending above some key near-term support levels at $1.40 or at $1.33 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.74 million shares. If that breakout kicks off soon, then MNGA will set up to re-test or possibly take out its next major overhead resistance levels at $2.40 to its 52-week high at $2.45.

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