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.

Tremor Video (TRMR) provides online video advertising services for advertisers, agencies and publisher partners in the U.S. This stock closed up 6.6% to $4.67 in Tuesday's trading session.

Tuesday's Range: $4.37-$4.71
52-Week Range: $3.59-$11.09
Tuesday's Volume: 366,000
Three-Month Average Volume: 244,471

From a technical perspective, TRMR spiked sharply higher here right off its 50-day moving average of $4.44 and into breakout territory above $4.48 with above-average volume. This move is starting to push shares of TRMR within range of triggering another big breakout trade. That trade will hit if TRMR manages to take out Tuesday's high of $4.71 to some more key near-term overhead resistance levels at $5.06 to $5.17 with high volume.

Traders should now look for long-biased trades in TRMR as long as it's trending above Tuesday's low of $4.37 or above $4.20 and then once it sustains a move or close above those breakout levels with volume that hits near or above 244,471 shares. If that breakout materializes soon, then TRMR will set up to re-test or possibly take out its next major overhead resistance level at $5.84. Any high-volume move above $5.84 will then give TRMR a chance re-fill some of its previous gap-down-day zone from last November that started at $10.50.

Andatee China Marine Fuel Services (AMCF), through its subsidiaries, engages in the production, storage, distribution and trading of blended marine fuel oil for cargo and fishing vessels in the People's Republic of China. This stock closed up 4.2% to $2.21 in Tuesday's trading session.

Tuesday's Range: $2.15-$2.23
52-Week Range: $0.48-$2.75
Tuesday's Volume: 81,000
Three-Month Average Volume: 210,355

From a technical perspective, AMCF spiked sharply higher here with lighter-than-average volume. This spike higher on Tuesday is starting to push shares of AMCF within range of triggering a near-term breakout trade. That trade will hit if AMCF manages to take out Tuesday's high of $2.23 to some more near-term overhead resistance at $2.28 with high volume.

Traders should now look for long-biased trades in AMCF as long as its trending above its 50-day moving average of $1.91 or above more near-term support at $1.87 and then once it sustains a move or close above those breakout levels with volume that hits near or above 210,355 shares. If that breakout hits soon, then AMCF will set up to re-test or possibly take out its 52-week high at $2.75.

Spherix (SPEX) operates as an intellectual property company that owns patented and unpatented intellectual properties. This stock closed up 4.4% to $1.86 in Tuesday's trading session.

Tuesday's Range: $1.75-$1.91
52-Week Range: $1.66-$27.86
Tuesday's Volume: 450,000
Three-Month Average Volume: 265,587

From a technical perspective, SPEX spiked notably higher here right above its recent low of $1.66 with above-average volume. This stock has been downtrending badly for the last six months, with shares plunging lower from over $13 to its recent low of $1.66. During that downtrend, shares of SPEX have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of SPEX have now entered oversold territory and the stock is starting to bounce higher off that $1.66 low. That bounce is starting to push shares of SPEX within range of triggering a near-term breakout trade. That trade will hit if SPEX manages to take out Tuesday's high of $1.92 to some more near-term overhead resistance at $2.08 with high volume.

Traders should now look for long-biased trades in SPEX as long as it's trending above its 52-week low at $1.66 and then once it sustains a move or close above those breakout levels with volume that hits near or above 265,587 shares. If that breakout gets started soon, then SPEX will set up to re-test or possibly take out its next major overhead resistance levels at $2.67 to $3.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

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At the time of publication, author had no positions in stocks mentioned. Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

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