3 Under-$10 Stocks Moving Higher Into Breakout Territory

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

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.

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

Ceres (CERE), an agricultural biotechnology company, develops and sells energy crops to produce renewable bioenergy feedstocks in North America. This stock closed up 2.8% to 72 cents per share in Thursday's trading session.

Thursday's Range: $0.68-$0.73
52-Week Range: $0.50-$2.14
Thursday's Volume: 562,000
Three-Month Average Volume: 323,364

From a technical perspective, CERE bounced notably higher here right off its 50-day moving average of 66 cents per share with above-average volume. This stock has formed a major bottoming chart pattern over the last two months, with shares finding buying interest each time it has pulled back to right around 62 cents to 65 cents per share. Shares of CERE are now starting to bounce higher off those support levels and it's quickly moving within range of triggering a big breakout trade. That trade will hit if CERE manages to take out some near-term overhead resistance levels at 72 to 74 cents per share with high volume.

Traders should now look for long-biased trades in CERE as long as it's trending above its 50-day at 66 cents per share or above more support at 62 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 323,364 shares. If that breakout begins soon, then CERE will set up to re-test or possibly take out its next major overhead resistance levels at 82 to 90 cents per share.

IntelliPharmaCeutics (IPCI), a pharmaceutical company, researches, develops and manufactures novel and generic controlled and targeted release oral solid dosage drugs in Canada. This stock closed up 1.8% to $2.79 a share in Thursday's trading session.

Thursday's Range: $2.70-$2.84
52-Week Range: $1.63-$6.46
Thursday's Volume: 74,000
Three-Month Average Volume: 172,387

From a technical perspective, IPCI bounced modestly higher here right above some near-term support at $2.65 with lighter-than-average volume. This stock recently plunged sharply lower from its July high of $4.19 to its recent low of $2.55. During that move, shares of IPCI have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of IPCI have now started to bounce off that $2.55 low and it's quickly moving within range of triggering a big breakout trade. That trade will hit if IPCI manages to take out some key near-term overhead resistance levels at $2.84 to $3 with high volume.

Traders should now look for long-biased trades in IPCI as long as it's trending above some key near-term support levels at $2.65 or at $2.55 and then once it sustains a move or close above those breakout levels with volume that hits near or above 172,387 shares. If that breakout materializes soon, then IPCI will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $3.50 or its 50-day moving average of $3.52.

Iao Kun Group (IKGH) promotes VIP gaming rooms in Macau, the People's Republic of China. This stock closed up 1.2% to $3.14 a share in Thursday's trading session.

Thursday's Range: $3.08-$3.15
52-Week Range: $2.57-$4.26
Thursday's Volume: 23,000
Three-Month Average Volume: 50,692

From a technical perspective, IKGH rose modestly here and flirted with both its 50-day moving average at $3.12 and its 200-day moving average at $3.13 with lighter-than-average volume. This small uptick on Thursday is starting to push shares of IKGH within range of triggering a near-term breakout trade. That trade will hit if IKGH manages to take out some near-term overhead resistance levels at $3.20 to $3.22 with high volume.

Traders should now look for long-biased trades in IKGH as long as it's trending above some key near-term support levels at $3.04 or at $2.93 and then once it sustains a move or close above those breakout levels with volume that hits near or above 50,692 shares. If that breakout hits soon, then IKGH will set up to re-test or possibly take out its next major overhead resistance levels at $3.36 to $3.55, or even $3.61.

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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