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.

Codexis (CDXS) develops biocatalysts for the pharmaceutical and fine chemicals markets in the U.S., Europe and Asia. This stock closed up 1% to $1.94 a share in Thursday's trading session.

Thursday's Range: $1.90-$1.97
52-Week Range: $1.24-$2.65
Thursday's Volume: 388,000
Three-Month Average Volume: 164,419

From a technical perspective, CDXS trended modestly higher here right off some near-term support at $1.90 with strong upside volume flows. This stock recently gapped up sharply higher from $1.38 to $2.65 with monster upside volume. This minor spike to the upside on Thursday is starting to push shares of CDXS within range of triggering a major breakout trade. That trade will hit if CDXS manages to take out some key near-term overhead resistance at $2 with high volume.

Read More: 5 Large-Cap Stocks to Trade for Earnings Season Gains

Traders should now look for long-biased trades in CDXS as long as it's trending above some near-term support levels at $1.90 or at $1.80 to $1.77 and then once it sustains a move or close above $2 with volume that hits near or above 164,419 shares. If that breakout gets underway soon, then CDXS will set up to re-test or possibly take out its 52-week high at $2.65.

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3 Biotech Stocks Under $10 to Trade for Breakouts