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.

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.

Regado Biosciences (RGDO), a biopharmaceutical company, focuses on the discovery and development of antithrombotic drug systems for acute and sub-acute cardiovascular and other indications. This stock closed flat at $2.91 in Tuesday's trading session.

Tuesday's Range: $2.85-$3.01
52-Week Range: $2.22-$14.10
Tuesday's Volume: 837,000
Three-Month Average Volume: 466,567

From a technical perspective, RGDO closed unchanged here with strong upside volume flows. Shares of RGDO have been uptrending strong for the last few weeks, with shares moving higher from its low of $2.22 to its recent high of $3.19. During that uptrend, shares of RGDO have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of RGDO within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will hit if RGDO manages to take out some key near-term overhead resistance levels at $3 to $3.19 with high volume.

Traders should now look for long-biased trades in RGDO as long as it’s trending above Tuesday's intraday of $2.85 or above more near-term support levels at $2.60 to $2.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 466,567 shares. If that breakout triggers soon, then RGDO will set up to re-fill some of its previous gap-down-day zone from July that started around $7.

Plug Power (PLUG), an alternative energy technology provider, is engaged in the design, development, manufacture and commercialization of fuel cell systems for the industrial off-road markets worldwide. This stock closed up 4.5% to $5.77 in Tuesday's trading session.

Tuesday's Range: $5.71-$6.08
52-Week Range: $0.36-$11.72
Tuesday's Volume: 29.25 million
Three-Month Average Volume: 18.47 million

From a technical perspective, PLUG gapped up sharply higher here with strong upside volume flows. This sharp high-volume move to the upside on Tuesday is quickly pushing shares of PLUG within range of triggering a major breakout trade. That trade will hit if PLUG manages to take out Tuesday's intraday high of $6.08 to some more key overhead resistance at $6.33 with high volume.

Traders should now look for long-biased trades in PLUG as long as it's trending above Tuesday's intraday low of $5.71 or above more key near-term support at $5.26 and then once it sustains a move or close above those breakout levels with volume that hits near or above 18.47 million shares. If that breakout kicks off soon, then PLUG will set up to re-test or possibly take out its next major overhead resistance levels at $7 to around $8.50.

NQ Mobile (NQ) provides mobile Internet services in the areas of mobile security, privacy, productivity, personalized cloud and family protection. This stock closed up 4.7% to $6.90 in Tuesday's trading session.

Tuesday's Range: $6.56-$7.06
52-Week Range: $3.45-$25.90
Tuesday's Volume: 7.09 million
Three-Month Average Volume: 7.78 million

From a technical perspective, NQ jumped notably higher here right off its 50-day moving average of $6.74 with decent upside volume flows. This strong spike to the upside on Tuesday is quickly pushing shares of NQ within range of triggering a major breakout trade. That trade will hit if NQ manages to take out some key near-term overhead resistance levels at $7.18 to $7.64 and then above $8 with high volume.

Traders should now look for long-biased trades in NQ as long as it's trending above Tuesday's intraday low of $6.56 or above more near-term support at $6 and then once it sustains a move or close above those breakout levels with volume that hits near or above 7.78 million shares. If that breakout gets underway soon, then NQ will set up to re-test or possibly take out its next major overhead resistance levels at $8 to $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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