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.

Viggle

Viggle  (VGGL) operates as a mobile and Web-based entertainment marketing platform for media companies, brands and consumers in the U.S. This stock is trading up 6.7% to $2.57 in Thursday's trading session.

Thursday's Range: $2.45-$2.68
52-Week Range: $1.27-$6.10
Thursday's Volume: 1.16 million
Three-Month Average Volume: 937,234

From a technical perspective, VGGL is ripping sharply higher here right above some near-term support at $2.30 with strong upside volume flows. This stock is displaying relative strength on Thursday versus the overall market weakness, and it's now starting to trend within range of triggering a near-term breakout trade. That trade will trigger if VGGL manages to take out some near-term overhead resistance levels at its 200-day moving average of $2.69 and then above more resistance at $2.77 to $2.80 with high volume.

Traders should now look for long-biased trades in VGGL as long as it's trending above some near-term support at $2.30 and then once it sustains a move or close above those breakout levels with volume that hits near or above 937,234 shares. If that breakout begins soon, then VGGL will set up to re-test or possibly take out its next major overhead resistance levels at $3.39 to $3.65, or even $4.

GTX

GTX  (GTXI), a biopharmaceutical company, engages in the discovery, development and commercialization of small molecules for the treatment of cancer and other serious medical conditions. This stock is trading up 2.5% to 76 cents per share in Thursday's trading session.

Thursday's Range: $0.74-$0.79
52-Week Range: $0.41-$1.70
Thursday's Volume: 139,000
Three-Month Average Volume: 107,274

From a technical perspective, GTXI is ripping higher here right off its 50-day moving average of 74 cents per share and back above its 200-day moving average of 76 cents per share with strong upside volume flows. This stock has been uptrending over the last few weeks, with shares consistently making higher lows and higher highs, which is bullish technical price action. This relative strength on Thursday for shares of GTXI versus the overall market weakness is now starting to push the stock within range of triggering a big breakout trade. That trade will hit if GTXI manages to take out some key overhead resistance levels at 79 to 84 cents per share with high volume.

Traders should now look for long-biased trades in GTXI as long as it's trending above its 50-day moving average of 74 cents per share or above more near-term support at 70 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 107,274 shares. If that breakout triggers soon, then GTXI will set up to re-test or possibly take out its next major overhead resistance levels at 98 cents per share to $1.10 a share.

Real Goods Solar

Real Good Solar  (RGSE) operates as a residential and commercial solar energy engineering, procurement and construction company in the U.S. This stock is trading up 2.2% to 21 cents per share in Thursday's trading session.

Thursday's Range: $0.19-$0.21
52-Week Range: $0.18-$3.20
Thursday's Volume: 383,000
Three-Month Average Volume: 2.66 million

From a technical perspective, RGSE is trending higher here and displaying relative strength versus the overall market weakness with lighter-than-average volume. This stock has been stuck in a nasty downtrend over the last six months, with shares plunging lower from over $1 a share to its new 52-week low of 18 cents per share. During that downtrend, shares of RGSE have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of RGSE have potentially carved out a near-term bottom after the stock tested 18 cents per share twice over the last few weeks and held. This stock is now starting to spike higher off those support levels and it's quickly moving within range of triggering a big breakout trade. That trade will trigger if RGSE manages to take out some key near-term overhead resistance levels at 22 cents to 23 cents per share with high volume.

Traders should now look for long-biased trades in RGSE as long as it's trending above its new 52-week low of 18 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.66 million shares. If that breakout hits soon, then RGSE will set up to re-test or possibly take out its next major overhead resistance levels at 26 cents per share to its 50-day moving average of 30 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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