3 Under-$10 Stocks Triggering Breakouts

 DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Stocks Under $10 Set to Soar

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.

>>Must-See Charts: 5 Big Trades for May

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

Chegg

Chegg (CHGG) operates student-first connected learning platform that empowers students to take control of their education to save time, save money and get smarter. This stock closed up 3.8% to $5.47 in Thursday's trading session.

Thursday's Range: $5.28-$5.57
52-Week Range: $4.98-$11.25
Thursday's Volume: 842,000
Three-Month Average Volume: 558,316

From a technical perspective, CHGG jumped higher here right above some near-term support at $5.23 with strong upside volume. This stock has been trending sideways for the last few weeks, with shares moving between $4.98 on the downside and around $6 on the upside. This spike higher on Thursday is starting to push shares of CHGG within range of triggering a near-term breakout trade above the upper-end of its recent range. That trade will hit if CHGG manages to take out some key near-term overhead resistance levels at $5.65 to $6 with high volume.

Traders should now look for long-biased trades in CHGG as long as its trending above some key near-term support levels at $5.23 to $5.16 or above $4.98 and then once it sustains a move or close above those breakout levels with volume that hits near or above 558,316 shares. If that breakout materializes soon, then CHGG will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $6.32 to $7.50.

Parkervision

Parkervision (PRKR) designs, develops, and markets proprietary radio frequency technologies and products for use in semiconductor circuits for wireless communication products in the U.S. This stock closed up 5% to $4.79 in Thursday's trading session.

Thursday's Range: $4.41-$4.79
52-Week Range: $2.16-$7.78
Thursday's Volume: 948,000
Three-Month Average Volume: 761,775

From a technical perspective, PRKR ripped higher here back above its 50-day moving average of $4.76 with above-average volume. This move pushed shares of PRKR into breakout territory, since the stock took out some near-term overhead resistance at $4.76 with high volume. This spike higher on Thursday is quickly pushing shares of PRKR within range of triggering another big breakout trade. That trade will hit if PRKR manages to take out Thursday's high of $4.79 to some more near-term overhead resistance at $4.95 with high volume.

Traders should now look for long-biased trades in PRKR as long as it's trending above its 200-day at $4.23 or above more near-term support at $4.11 and then once it sustains a move or close above those breakout levels with volume that hits near or above 761,775 shares. If that breakout gets underway soon, then PRKR will set up to re-test or possibly take out its next major overhead resistance levels at $5.68 to $5.80.

BioScrip

BioScrip (BIOS) provides home infusion and other home care services, and pharmacy benefit management services in the U.S. This stock closed up 6.6% to $7.38 in Thursday's trading session.

Thursday's Range: $6.92-$7.42
52-Week Range: $5.61-$17.62
Thursday's Volume: 3.34 million
Three-Month Average Volume: 1.74 million

From a technical perspective, BIOS ripped sharply higher here right above some near-term support at $6.87 and back above its 50-day moving average of $7.33 with heavy upside volume. This move is quickly pushing shares of BIOS within range of triggering a major breakout trade. That trade will hit if BIOS manages to take out some near-term overhead resistance levels at $7.61 to $7.71 with high volume.

Traders should now look for long-biased trades in BIOS as long as it's trending above some key near-term support levels at $6.87 or at $6.63 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.74 million shares. If that breakout hits soon, then BIOS will set up to re-test or possibly take out its next major overhead resistance levels at $8.25 to $8.90. Any high-volume move above those levels will then give BIOS a chance to tag $10.

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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