4 Stocks Under $10 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.

Pernix Therapeutics

Pernix Therapeutics (PTX) , a specialty pharmaceutical company, develops, manufactures, markets and sells branded and generic pharmaceutical products. This stock closed up 5% to $7.53 in Thursday's trading session.

Thursday's Range: $7.11-$7.75
52-Week Range: $1.68-$9.56
Thursday's Volume: 396,000
Three-Month Average Volume: 421,860

From a technical perspective, PTX ripped sharply higher here right above some near-term support at $7.10 with decent upside volume. This sharp move to the upside on Thursday is now quickly pushing shares of PTX within range of triggering a near-term breakout trade. That trade will hit if PTX manages to take out some near-term overhead resistance at $8 with high volume.

Traders should now look for long-biased trades in PTX as long as it's trending above some key near-term support levels at $7.10 or at $6.83 and then once it sustains a move or close above $8 with volume that hits near or above 421,860 shares. If that breakout triggers soon, then PTX will set up to re-test or possibly take out its next major overhead resistance levels at $8.93 to $9, or even its 52-week high at $9.56.

Silicon Graphics International

Silicon Graphics International (SGI) develops, markets and sells various servers, enterprise-class storage hardware, differentiating software and solutions. This stock closed up 3.3% to $9.36 in Thursday's trading session.

Thursday's Range: $9.07-$9.47
52-Week Range: $8.16-$16.60
Thursday's Volume: 179,000
Three-Month Average Volume: 270,564

From a technical perspective, SGI bounced notably higher here right above some near-term support at $9 with lighter-than-average volume. This stock has been making higher lows over the last two months, and this stock is now starting to trend within range of triggering a near-term breakout trade. That trade will hit if SGI manages to take out some near-term overhead resistance levels at its 50-day moving average of $9.58 to some more near-term overhead resistance levels at $9.65 to $10.23 with high volume.

Traders should now look for long-biased trades in SGI as long as it's trending above some near-term support levels at $9 or at $8.86 and then once it sustains a move or close above those breakout levels with volume that hits near or above 270,564 shares. If that breakout hits soon, then SGI will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $10.83 to its gap-down-day high of $11 from May. Any high-volume move above $11 will then give SGI a chance to re-fill some of its previous gap-down-day zone that started near $12.50.

Quiksilver

Quiksilver (ZQK) designs, develops, markets, and distributes branded apparel, footwear, accessories, and related products primarily for men, women, and children. This stock closed up 11.1% to $1.80 in Thursday's trading session.

Thursday's Range: $1.61-$1.83
52-Week Range: $1.60-$9.29
Thursday's Volume: 3.33 million
Three-Month Average Volume: 2.95 million

From a technical perspective, ZQK skyrocketed higher here right off its 52-week low of $1.60 with strong upside volume flows. This large spike to the upside on Thursday is quickly pushing shares of ZQK within range of triggering a big breakout trade. That trade will hit if ZQK manages to take out some key near-term overhead resistance levels at $1.87 to its 50-day moving average at $1.93 and then above more resistance at $2.03 with high volume.

Traders should now look for long-biased trades in ZQK as long as it’s trending above its 52-week low of $1.60 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.95 million shares. If that breakout triggers soon, then ZQK will set up to re-test or possibly take out its next major overhead resistance levels at $2.20 to its gap-down-day high from September just below $2.40. Any high-volume move above $2.40 will then give ZQK a chance to re-fill some of its previous gap-down-day zone that started near $3.

Senomyx

Senomyx (SNMX) discovers, develops and commercializes flavor ingredients for the packaged food, beverage and ingredient supply industries using proprietary taste receptor-based assays and screening technologies. This stock closed up 10.4% to $8.49 in Thursday's trading session.

Thursday's Range: $7.70-$8.62
52-Week Range: $3.27-$12.74
Thursday's Volume: 622,000
Three-Month Average Volume: 425,867

From a technical perspective, SNMX ripped sharply higher here right above some near-term support at $7.66 and back above its 50-day moving average of $8.68 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 $7.39, $7.55 and $7.66 a share. Shares of SNMX are now starting to spike sharply higher above those support levels and it's quickly moving within range of triggering a major breakout trade. That trade will hit if SNMX manages to take out its 50-day moving average of $8.68 and then once it clears more key overhead resistance levels at $9.38 to $10.11 with high volume.

Traders should now look for long-biased trades in SNMX as long as it's trending above its 200-day at $8.04 or above some more near-term support at $7.66 and then once it sustains a move or close above those breakout levels with volume that hits near or above 425,867 shares. If that breakout triggers soon, then SNMX will set up to re-test or possibly take out its next major overhead resistance levels at $12 to its 52-week high at $12.74.

-- 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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