3 Under-$10 Stocks Triggering Big 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.

Gordmans Stores

Gordmans Stores (GMAN) operates department stores under the Gordmans name in the U.S. Its merchandise selection includes a range of apparel, footwear and home fashions products, as well as accessories. This stock closed up 1.7% to $3.46 a share in Thursday's trading session.

Thursday's Range: $3.33-$3.49
52-Week Range: $3.06-$11.55
Thursday's Volume: 68,000
Three-Month Average Volume: 136,689

From a technical perspective, GMAN jumped modestly higher here right above some near-term support at $ 3.29 with lighter-than-average volume. This stock has been downtrending badly over the last four months, with shares moving sharply lower from its high of $5.46 to its recent low of $3.29. During that downtrend, shares of GMAN have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of GMAN showed some relative strength on Thursday as the market plunged, and it's now starting to push within range of triggering a near-term breakout trade. That trade will hit if GMAN manages to take out its 50-day moving average of $3.52 to some more near-term overhead resistance at $3.78 with high volume.

Traders should now look for long-biased trades in GMAN as long as it's trending above some near-term support at $3.29 or just below $3.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 136,689 shares. If that breakout develops soon, then GMAN will set up to re-test or possibly take out its next major overhead resistance levels at $4 to $4.50.

Good Times Restaurants

Good Times Restaurants (GTIM) , through its subsidiaries, develops, owns, operates and franchises hamburger-oriented drive-through restaurants under the Good Times Burgers & Frozen Custard name in Colorado. This stock closed up 1.1% to $5.30 in Thursday's trading session.

Thursday's Range: $5.00-$5.40
52-Week Range: $2.06-$5.49
Thursday's Volume: 265,000
Three-Month Average Volume: 64,686

From a technical perspective, GTIM trended modestly higher here right off some near-term support at $5 and above more support at $4.75 with above-average volume. This stock has been uptrending strong over the last two months, with shares moving higher from its low of $2.92 to its recent high of $5.49. During that uptrend, shares of GTIM have been making mostly higher lows and higher highs, which is bullish technical price action. This spike higher on Thursday is quickly pushing shares of GTIM within range of triggering a near-term breakout trade. That trade will hit if GTIM manages to take out its 52-week high of $5.49 with high volume.

Traders should now look for long-biased trades in GTIM as long as it's trending above some key near-term support levels at $5 or at $4.75 and then once it sustains a move or close above $5.49 with volume that hits near or above 64,686 shares. If that breakout kicks off soon, then GTIM 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 to $6.50, or even $7.

Synacor

Synacor (SYNC) provides startpages and homescreens, TV Everywhere solutions, Identity Management services and various cloud-based services across a range of devices for cable, satellite, telecom and consumer electronics companies in the U.S., and the U.K. This stock closed up 3.2% to $1.92 in Thursday's trading session.

Thursday's Range: $1.86-$1.93
52-Week Range: $1.80-$2.88
Thursday's Volume: 132,556
Three-Month Average Volume: 75,786

From a technical perspective, SYNC ripped higher here right above its new 52-week low of $1.80 with above-average volume. This notable move higher on Thursday showed that shares of SYNC had some relative strength when compared to the overall weakness in the markets. This could mean that demand is strong for shares of SYNC here since the sellers lost control when they had the wind at their backs with the action in the overall markets. Shares of SYNC are now starting to trend within range of triggering a near-term breakout trade. That trade will hit if SYNC manages to take out some near-term overhead resistance levels at $ 1.95 to $2.02 with high volume.

Traders should now look for long-biased trades in SYNC as long as it's trending above Thursday's intraday low of $1.86 or above its 52-week low of $1.80 and then once it sustains a move or close above those breakout levels with volume that hits near or above 132,556 shares. If that breakout develops soon, then SYNC will set up to re-test or possibly take out its next major overhead resistance levels at $2.10 to its 50-day moving average of $2.13. Any high-volume move above those levels will then give SYNC a chance to tag $2.30 to its 200-day moving average of $2.39.

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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