5 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.

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

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GlycoMimetics

GlycoMimetics (GLYC) , a clinical stage biotechnology company, focuses on the discovery and development of glycomimetic drugs to address unmet medical needs resulting from diseases in the U.S. This stock closed up 5.5% to $7.67 in Wednesday's trading session.

Wednesday's Range: $7.24-$7.74
52-Week Range: $6.02-$18.99
Wednesday's Volume: 33,000
Three-Month Average Volume: 96,534

From a technical perspective, GLYC ripped higher here right above some near-term support at $7.14 with lighter-than-average volume. This stock has formed a major bottoming chart pattern over the last two months and change, with shares finding buying interest each time it has pulled back to just under $7.50. Shares of GLYC are now starting to spike higher off those support levels and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if GYLC manages to clear Wednesday's intraday high of $7.74 to its 50-day moving average of $8.06 with high volume.

Traders should now look for long-biased trades in GLYC as long as it’s trending above some key near-term support at $7.14 and then once it sustains a move or close above those breakout levels with volume that hits near or above 96,534 shares. If that breakout hits soon, then OGXI will set up to re-test or possibly take out its next major overhead resistance levels at $8.49 to $9, or even $9.46 to $10.10.

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OncoGenex Pharmaceuticals

OncoGenex Pharmaceuticals (OGXI) , a biopharmaceutical company, develops and commercializes therapies that address treatment resistance in cancer patients. This stock closed up 3.7% to $3.06 in Wednesday's trading session.

Wednesday's Range: $2.97-$3.17
52-Week Range: $2.86-$14.25
Wednesday's Volume: 371,000
Three-Month Average Volume: 184,214

From a technical perspective, OGXI spiked notably higher here right above some near-term support at $2.91 with above-average volume. This stock has formed a major bottoming chart pattern over the last month and change, with shares finding buying interest at $2.86, $2.89 and $2.91. Following that bottom, shares of OGXI have now started to spike higher and move within range of triggering a near-term breakout trade. That trade will hit if OGXI manages to clear some near-term overhead resistance levels at its 50-day moving average of $3.18 to some more near-term overhead resistance at $3.45 with high volume.

Traders should now look for long-biased trades in OGXI as long as it's trending above those key support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 184,214 shares. If that breakout triggers soon, then OGXI will set up to re-test or possibly take out its next major overhead resistance levels at $3.84 to $4.33.

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Sphere 3D

Sphere 3D (ANY) provides virtualization technology solutions. This stock closed up 5.7% to $7 in Wednesday's trading session.

Wednesday's Range: $6.59-$7.17
52-Week Range: $2.29-$11.46
Wednesday's Volume: 76,000
Three-Month Average Volume: 41,963

From a technical perspective, ANY ripped higher here right above some near-term support levels at $6.50 to $6.36 with above-average volume. This move to the upside on Wednesday is starting to push shares of ANY within range of triggering a big breakout trade above a key downtrending trendline. That trade will hit if ANY manages to take out its 50-day moving average of $7.29 to some more key overhead resistance levels at $7.73 to $7.95 with high volume.

Traders should now look for long-biased trades in ANY as long as it's trending above some near-term support levels at $6.50 or at $6.36 and then once it sustains a move or close above those breakout levels with volume that hits near or above 41,963 shares. If that breakout begins soon, then ANY will set up to re-test or possibly take out its next major overhead resistance levels at $9.45 to $10, or even $11.

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Netlist

Netlist (NLST) designs, manufactures and sells a range of logic-based memory subsystems for the datacenter, storage, and high-performance computing markets worldwide. This stock closed up 8.5% to $1.14 in Wednesday’s trading session.

Wednesday's Range: $1.05-$1.15
52-Week Range: $0.53-$2.41
Wednesday's Volume: 401,000
Three-Month Average Volume: 368,939

From a technical perspective, NLST ripped sharply higher here right above some near-term support at $1.04 with above-average volume. This sharp spike to the upside on Wednesday is quickly pushing shares of NLST within range of triggering a big breakout trade. That trade will hit if NLST manages to take out its 50-day moving average of $1.17 to some more key overhead resistance at around $1.22 with high volume.

Traders should now look for long-biased trades in NLST as long as it's trending above some key near-term support levels at $1.04 or at $1.01 and then once it sustains a move or close above those breakout levels with volume that hits near or above 368,939 shares. If that breakout materializes soon, then NLST will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $1.36 to $1.45, or even $1.59 to $1.69.

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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