4 Under-$10 Stocks 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.

Idera Pharmaceuticals

Idera Pharmaceuticals (IDRA), a clinical stage biotechnology company, is engaged in the discovery and development of novel therapeutics that modulate immune responses through toll-like receptors in the U.S. This stock closed up 3.5% to $2.62 in Tuesday's trading session.

Tuesday's Range: $2.45-$2.62
52-Week Range: $1.45-$6.87
Tuesday's Volume: 763,000
Three-Month Average Volume: 1.71 million

From a technical perspective, IDRA bounced notably higher here right above some near-term support at $2.38 with lighter-than-average volume. This stock recently formed a longer-term bottoming chart pattern, since shares found buying interest right above its May low of $2.34. Since holding about that low, shares of IDRA have now started to bounce higher and move within range of triggering a near-term breakout trade. That trade will hit if IDRA manages to take out some key near-term overhead resistance levels at $2.87 to $3.01 with high volume.

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