3 Under-$10 Stocks Triggering Breakout Trades

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.

Neogenomics

Neogenomics (NEO) operates a network of cancer-focused testing laboratories providing genetic and molecular testing services to hospitals, pathologists, oncologists, urologists, other clinicians and researchers, and other laboratories in the U.S. This stock closed up 0.92% to $5.51 in Tuesday's trading session.

Tuesday's Range: $5.44-$5.56
52-Week Range: $2.25-$5.77
Tuesday's Volume: 321,000
Three-Month Average Volume: 626,916

From a technical perspective, NEO trended modestly higher here with lighter-than-average volume. This stock has been uptrending a bit over the last month, with shares moving higher from its low of $4.69 to its recent high of $5.65. During that move, shares of NEO have been making mostly higher lows and higher highs, which is bullish technical price action. This move to the upside on Tuesday is starting to push shares of NEO within range of triggering a major breakout trade. That trade will hit if NEO manages to take out some key near-term overhead resistance levels at $5.65 to its 52-week high at $5.77 with high volume.

Traders should now look for long-biased trades in NEO as long as it's trending above its 50-day moving average of $4.99 and then once it sustains a move or close above those breakout levels with volume that hits near or above 626,916 shares. If that breakout develops soon, then NEO will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $6.50 to $7, or even $7.50.

Gain Capital

Gain Capital (GCAP) , together with its subsidiaries, provides trading services and solutions to retail and institutional customers worldwide. This stock closed up 5.5% to $6.86 in Tuesday's trading session.

Tuesday's Range: $6.50-$6.90
52-Week Range: $5.89-$14.62
Tuesday's Volume: 388,000
Three-Month Average Volume: 261,492

From a technical perspective, GCAP ripped sharply higher here back above its 50-day moving average of $6.58 with above-average volume. This spike to the upside on Tuesday also pushed shares of GCAP into breakout territory, since the stock took out some near-term overhead resistance at $6.74. Shares of GCAP are now quickly moving within range of triggering another big near-term breakout trade. That trade will hit if GCAP manages to clear some near-term overhead resistance at $6.97 to just above $7 with high volume.

Traders should now look for long-biased trades in GCAP as long as it's trending above Tuesday's intraday low of $6.50 or above some more near-term support at $6.23 and then once it sustains a move or close above those breakout levels with volume that hits near or above 261,492 shares. If that breakout starts soon, then GCAP will set up to re-test or possibly take out its next major overhead resistance levels at $7.50 to $8, or even its 200-day moving average at $8.46.

Dipexium Pharmaceuticals

Dipexium Pharmaceuticals (DPRX) , a biopharmaceutical company, focuses on the development and commercialization of antibiotics for the treatment of infectious diseases. This stock closed up 1.5% to $9.88 in Tuesday’s trading session.

Tuesday's Range: $9.46-$10.31
52-Week Range: $8.00-$15.86
Tuesday's Volume: 84,034
Three-Month Average Volume: 16,845

From a technical perspective, DPRX trended modestly higher here right off its 50-day moving average of $9.37 with above-average volume. This spike to the upside on Tuesday briefly pushed shares of DPRX into breakout territory, since the stock flirted with some near-term overhead resistance at $10.05. Shares of DPRX tagged an intraday high of $10.31, before closing just below that level at $9.88. This stock is now starting to trend within range of triggering another big breakout trade. That trade will hit if DPRX manages to clear Tuesday's intraday high of $10.31 to some more near-term overhead resistance at $10.37 with high volume.

Traders should now look for long-biased trades in DPRX as long as it's trending above its 50-day at $9.37 and then once it sustains a move or close above those breakout levels with volume that hits near or above 16,845 shares. If that breakout materializes soon, then DPRX will set up to re-test or possibly take out its next major overhead resistance levels at $11.50 to $12, or even $12.50 to $13.

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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