3 Stocks Under $10 to Trade for Big Breakouts

DELAFIELD, Wis. (Stockpickr) -- As part of a daily routine as an active trader or investor, one should always be tracking the stocks in the market that are making the biggest percentage gains and the biggest percentage losses.

Stocks that are making large moves to the upside 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 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.

Jive Software

Jive Software  (JIVE) provides communication and collaboration solutions to businesses, government agencies and other enterprises. This stock is trading up 2.1% to $5.24 in Tuesday's trading session.

Tuesday's Range: $5.04-$5.25
52-Week Range: $4.88-$8.75
Tuesday's Volume: 427,000
Three-Month Average Volume: 556,897

From a technical perspective, JIVE is spiking modestly higher here right above some near-term support at $5 with decent upside volume flows. This stock has been trending sideways and consolidating for the last two months, with shares moving between $4.88 on the downside and $5.51 on the upside. This move higher on Tuesday is now starting to push shares of JIVE within range of triggering a big breakout trade above the upper-end of its recent sideways trending chart pattern. That trade will hit if JIVE manages to take out some key near-term overhead resistance levels at $5.27 to its 50-day moving average of $5.35 and then above more resistance at $5.51 with high volume.

Traders should now look for long-biased trades in JIVE as long as it's trending above some near-term support levels at $5 or at $4.88 and then once it sustains a move or close above those breakout levels with volume that hits near or above 556,897 shares. If that breakout materializes soon, then JIVE will set up to re-fill some of its previous gap-down-day zone from February that stared near $6.30.

BioScrip

BioScrip  (BIOS) provides home infusion and other home care services and pharmacy benefit management services in the U.S. This stock is trading up 3.5% to $4.44 in Tuesday's trading session.

Tuesday's Range: $4.24-$4.48
52-Week Range: $3.41-$8.75
Tuesday's Volume: 444,000
Three-Month Average Volume: 1.30 million

From a technical perspective, BIOS is spiking higher here right above some near-term support at $4.18 and displaying relative strength versus the overall market weakness with lighter-than-average volume. This move higher on Tuesday is starting to push shares of BIOS within range of triggering a major breakout trade. That trade will hit if BIOS manages to take out some key overhead resistance levels at $4.75 to $4.81 with high volume.

Traders should now look for long-biased trades in BIOS as long as it's trending above some key near-term support at $4.18 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.30 million shares. If that breakout begins soon, then BIOS will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $5.30 to $5.50, or even $6.

Cardica

Cardica  (CRDC), designs, manufactures and markets automated anastomotic systems for use by cardiac surgeons to perform coronary bypass surgery in the U.S. and internationally. This stock is trading up 1% to 64 cents per share in Tuesday's trading session.

Tuesday's Range: $0.46-$0.65
52-Week Range: $0.46-$1.32
Tuesday's Volume: 92,000
Three-Month Average Volume: 253,508

From a technical perspective, CRDC is spiking modestly higher here right above its 50-day moving average of 59 cents per share with lighter-than-average volume. This move to the upside on Tuesday is quickly pushing shares of CRDC within range of triggering a big breakout trade above some key near-term overhead resistance levels. That trade will trigger if CRDC manages to take out some key near-term overhead resistance levels at 66 cents to 68 cents per share with high volume.

Traders should now look for long-biased trades in CRDC as long as it's trending above its 50-day moving average of 59 cents per share and then once it sustains a move or close above those breakout levels with volume that registers near or above 253,508 shares. If that breakout develops soon, then CRDC will set up to re-test or possibly take out its next major overhead resistance levels at 75 cents to 80 cents per share.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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