6 Stocks Under $10 to Trade for 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.

Swift Energy

Swift Energy  (SFY), an independent oil and gas company, acquires, explores, develops and operates oil and gas properties. This stock is trading up 5.5% to $3.06 in Tuesday's trading session.

Tuesday's Range: $2.92-$3.06
52-Week Range: $1.97-$13.12
Tuesday's Volume: 916,000
Three-Month Average Volume: 2.24 million

From a technical perspective, SFY is spiking higher here right above some near-term support levels at $2.86 to its 50-day moving average of $2.69 with lighter-than-average volume. This spike to the upside on Tuesday is now pushing shares of SFY within range of triggering a near-term breakout trade above some key overhead resistance levels. That trade will trigger if SFY manages to take out some near-term overhead resistance levels at $3.07 to $3.14 and then above more resistance at $3.20 with high volume.

Traders should now look for long-biased trades in SFY as long as it's trending above some key near-term support levels at $2.86 or above its 50-day at $2.69 and then once it sustains a move or close above those breakout levels with volume that registers near or above 2.24 million shares. If that breakout triggers soon, then SFY will set up to re-test or possibly take out its next major overhead resistance levels at $3.43 to $3.47, or even $4.

CHC Group

CHC Group  (HELI) provides commercial helicopter services to the offshore oil and gas industry worldwide. This stock is trading up 7.5% to $1.29 in Tuesday's trading session.

Tuesday's Range: $1.19-$1.31
52-Week Range: $1.07-$9.31
Tuesday's Volume: 88,000
Three-Month Average Volume: 355,395

From a technical perspective, HELI is trending higher here right above some near-term support at $1.15 with lighter-than-average volume. This stock has been consolidating and trending sideways over the last two months, with shares moving between $1.07 on the downside and $1.50 on the upside. This spike higher on Tuesday is now starting to push shares of HELI within range of triggering a major breakout trade above the upper-end of its recent sideways trending chart pattern. That trade will hit if HELI manages to take out some key near-term overhead resistance levels at $1.34 to $1.50 with high volume.

Traders should now look for long-biased trades in HELI as long as it's trending above some key near-term support at $1.15 and then once it sustains a move or close above those breakout levels with volume that registers near or above 355,395 shares. If that breakout hits soon, then HELI will set up to re-test or possibly take out its next major overhead resistance levels at $1.85 to $2, or even $2.10 to $2.20.

Paragon Offshore

Paragon Offshore  (PGN), together with its subsidiaries, provides offshore drilling rigs. This stock is trading up 4.7% to $1.78 in Tuesday's trading session.

Tuesday's Range: $1.71-$1.81
52-Week Range: $1.05-$17.50
Tuesday's Volume: 787,000
Three-Month Average Volume: 2.34 million

From a technical perspective, PGN is jumping higher here right above its 50-day moving average of $1.59 with lighter-than-average volume. This stock has been uptrending over the last two months, with shares moving higher from its low of $1.05 to its recent high of $2.19 a share. During that uptrend, shares of PGN have been making mostly higher lows and higher highs, which is bullish technical price action. This spike higher on Tuesday is now starting to push shares of PGN within range of triggering a near-term breakout trade. That trade will hit if PGN manages to clear some key near-term overhead resistance levels at $1.90 to $2 a share and then above $2.19 with high volume.

Traders should now look for long-biased trades in PGN as long as it’s trending above its 50-day at $1.59 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.34 million shares. If that breakout begins soon, then PGN will set up to re-test or possibly take out its next major overhead resistance levels $2.50 to $3.

Bellatrix Exploration

Bellatrix Exploration (BXE) engages in the acquisition, exploration, development and production of oil and natural gas reserves in the provinces of Alberta, British Columbia and Saskatchewan. This stock is trading up 4.2% to $3.20 in Tuesday's trading session.

Tuesday's Range: $3.11-$3.25
52-Week Range: $1.86-$10.70
Tuesday's Volume: 793,000
Three-Month Average Volume: 1 million

From a technical perspective, BXE is spiking notably higher here right above some near-term support at $2.99 and above its 50-day moving average of $2.80 with decent upside volume flows. This jump higher on Tuesday is now starting to push shares of BXE within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will hit if BXE manages to take out some key overhead resistance levels at $3.25 to $3.28 with high volume.

Traders should now look for long-biased trades in BXE as long as it's trending above some near-term support levels at $2.99 or above its 50-day at $2.80 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1 million shares. If that breakout gets started soon, then BXE will set up to re-test or possibly take out its next major overhead resistance levels at $3.75 to $3.90 or even $4 to $4.28.

Penn West Petroleum

Penn West Petroleum  (PWE) explores for, develops and produces oil and natural gas properties in western Canada. This stock is trading up 2.4% to $2.44 in Tuesday's trading session.

Tuesday's Range: $2.42-$2.50
52-Week Range: $1.30-$10.19
Tuesday's Volume: 2.15 million
Three-Month Average Volume: 5.18 million

From a technical perspective, PWE is spiking higher here right above some near-term support at $2.20 with lighter-than-average volume. This stock has been consolidating and trending sideways for the last month, with shares moving between $2.20 to $2 a share on the downside and $2.54 to $2.60 a share on the upside. this spike higher on Tuesday is now starting to push shares of PWE within range of triggering a near-term breakout trade above the upper-end of its recent sideways trending chart pattern. That trade will trigger if PWE manages to clear some near-term overhead resistance levels at $2.54 to $2.60 a share with high volume.

Traders should now look for long-biased trades in PWE as long as it's trending above some near-term support at $2.20 and then once it sustains a move or close above those breakout levels with volume that registers near or above 5.18 million shares. If that breakout gets started soon, then PWE will set up to re-test or possibly take out its next major overhead resistance levels at $2.75 to $3 a share, or even $3.50 a share.

A.M. Castle

A.M. Castle (CAS), together with its subsidiaries, operates as a specialty metals and plastics distribution company in the U.S., Canada, Mexico, France, the U.K., Spain, China and Singapore. This stock is trading up 1.7% to $3.97 in Tuesday's trading session.

Tuesday's Range: $3.91-4.02
52-Week Range: $2.80-$12.90
Tuesday's Volume: 43,000
Three-Month Average Volume: 287,656

From a technical perspective, CAS is trending modestly higher here right above its 50-day moving average of $3.74 with lighter-than-average volume. This stock has been uptrending over the last two months, with shares moving higher from its low of $2.80 to its recent high of $4.19. During that uptrend, shares of CAS have been making mostly higher lows and higher highs, which is bullish technical price action. This bump higher on Tuesday is now starting to push shares of CAS within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will hit if CAS manages to take out some key near-term overhead resistance levels at $4.12 to $4.19 with high volume.

Traders should now look for long-biased trades in CAS as long as it's trending above its 50-day at $3.74 and then once it sustains a move or close above those breakout levels with volume that hits near or above 287,565 shares. If that breakout develops soon, then CAS will set up to re-test or possibly take out its next major overhead resistance levels at $5 to $5.50, or even $6.

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

More from Investing

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

McDonald's Criticized for Not Doing More in Wake of Sexual Harassment Claims

McDonald's Criticized for Not Doing More in Wake of Sexual Harassment Claims

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%