4 Tech 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.

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.

Portugal Telecom

Portugal Telecom (PT) provides various telecommunications and multimedia services in Portugal, Brazil and internationally. This stock closed up 2.9% to $2.09 in Tuesday's trading session.

Tuesday's Range: $2.01-$2.11
52-Week Range: $1.82-$5.02
Tuesday's Volume: 741,000
Three-Month Average Volume: 1.62 million

From a technical perspective, PT trended notably higher here right above some near-term support at $2 with lighter-than-average volume. This stock has formed a major bottoming chart pattern over the last two months, with shares finding buying interest each time it has pulled back to $1.90 or just below that level. Shares of PT are now starting to spike higher off those support levels and it's quickly moving move within range of triggering a near-term breakout trade. That trade will hit if PT manages to take out its 50-day moving average at $2.09 and above Tuesday's intraday high of $2.11 with high volume.

Traders should now look for long-biased trades in PT as long as it's trending above some near-term support at $1.90 and then once it sustains a move or close above that breakout level with volume that hits near or above 1.62 million shares. If that breakout develops soon, then PT will set up to re-test or possibly take out its next major overhead resistance levels at $2.31 to $2.35, or even $2.49 to $2.70.

Rubicon Technology

Rubicon Technology (RBCN) , an electronic materials provider, develops, manufactures and sells monocrystalline sapphire and other crystalline products for light-emitting diodes, radio frequency integrated circuits, blue laser diodes, optoelectronics and other optical applications. This stock closed up 7.7% to $4.31 in Tuesday's trading session.

Tuesday's Range: $3.77-$4.75
52-Week Range: $3.56-$14.67
Tuesday's Volume: 2.32 million
Three-Month Average Volume: 648,974

From a technical perspective, RBCN spiked sharply higher here right above its new 52-week low of $3.56 with heavy upside volume flows. This stock has been downtrending badly for the last three months, with shares moving lower from is high of $9.70 to that its new 52-week low of $3.56. During that downtrend, shares of RBCN have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this spike higher on Tuesday has now started to spike shares of RBCN within range of triggering a near-term breakout trade. That trade will hit if RBCN manages to take out some near-term overhead resistance levels at Tuesday's intraday high of $4.75 to $5 with high volume.

Traders should now look for long-biased trades in RBCN as long as it's trending above Tuesday's intraday low of $3.77 or above its new 52-week low of $3.56 and then once it sustains a move or close above those breakout levels with volume that hits near or above 648,974 shares. If that breakout starts soon, then RBCN will set up to re-test or possibly take out its next major overhead resistance levels at $5.50 to its 50-day moving average of $5.90, or even $6.50.

Mattersight

Mattersight (MATR) provides enterprise analytics services with a focus on customer and employee interactions and behaviors. This stock closed up 3.9% to $6.12 in Tuesday’s trading session.

Tuesday's Range: $5.46-$6.17
52-Week Range: $3.80-$7.85
Tuesday's Volume: 179,000
Three-Month Average Volume: 81,100

From a technical perspective, MATR ripped higher here back above its 200-day moving average of $5.61 and into breakout territory above some near-term overhead resistance at $6.01 with above-average volume. This sharp spike to the upside on Tuesday is quickly pushing shares of MATR within range of triggering another big breakout trade. That trade will hit if MATR manages to clear some key overhead resistance levels at $6.25 to $6.50 with high volume.

Traders should now look for long-biased trades in MATR as long as it's trending above Tuesday's intraday low of $5.46 or above its 50-day at $5.22 and then once it sustains a move or close above those breakout levels with volume that hits near or above 81,100 shares. If that breakout materializes soon, then MATR will set up to re-test or possibly take out its next major overhead resistance levels at its 52-week high of $7.85 to some past overhead resistance at $8.30.

LRAD

LRAD (LRAD) designs, develops and commercializes directed sound technologies and products in North and South America, Europe, the Middle East and Asia. This stock closed up 4.1% to $3 in Tuesday’s trading session.

Tuesday's Range: $2.70-$3.05
52-Week Range: $1.35-$3.88
Tuesday's Volume: 174,000
Three-Month Average Volume: 308,060

From a technical perspective, LRAD spiked sharply higher here right above some near-term support levels at $2.62 to $2.49 with lighter-than-average volume. This stock has been uptrending over the last few weeks, with shares moving higher from its low of $2.49 to its recent high of $3.17. During that uptrend, shares of LRAD have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of LRAD within range of triggering a big breakout trade. That trade will hit if LRAD manages to take out Tuesday's intraday high of $3.05 to some more near-term overhead resistance levels at $3.17 to $3.19 with high volume.

Traders should now look for long-biased trades in LRAD as long as it's trending above some key near-term support levels at $2.62 to $2.49 then once it sustains a move or close above those breakout levels with volume that hits near or above 308,060 shares. If that move gets started soon, then LRAD will set up to re-test or possibly take out its next major overhead resistance levels at $3.40 to its 52-week high of $3.88.

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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