3 Stocks Under $10 Triggering Big Breakout Trades

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.

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 5.3% to $4.14 in Thursday's trading session.

Thursday's Range: $3.90-$4.18
52-Week Range: $2.80-$12.90
Thursday's Volume: 1.12 million
Three-Month Average Volume: 284,580

From a technical perspective, CAS is ripping sharply higher here right above some near-term support at its 50-day moving average of $3.71 with monster upside volume flows. This sharp spike to the upside on Thursday is now quickly pushing shares of CAS within range of triggering a major breakout trade. That trade will hit if CAS manages to take out some key 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 Thursday's current intraday low of $3.90 or above its 50-day moving average of $3.71 and then once it sustains a move or close above those breakout levels with volume that registers near or above 284,580 shares. If that breakout gets going soon, then CAS will set up to re-test or possibly take out its next major overhead resistance levels at $5 to $6, or even $6.50.

Mattson Technology

Mattson Technology  (MTSN) designs, manufactures, markets and supports semiconductor wafer processing equipment for use in fabricating integrated circuits worldwide. This stock is trading up 3.7% to $3.56 in Thursday's trading session.

Thursday's Range: $3.44-$3.58
52-Week Range: $1.81-$5.10
Thursday's Volume: 240,000
Three-Month Average Volume: 1.17 million

From a technical perspective, MTSN is spiking notably higher here right above some near-term support at $3.34 with lighter-than-average volume. This spike to the upside on Thursday is now starting to push shares of MTSN within range of triggering a near-term breakout trade above some key overhead resistance levels. This breakout, if it triggers, will also potentially reverse the trend for MTSN since it's been stuck in a nasty downtrend for the last two months. That breakout will trigger if MTSN manages to take out some key overhead resistance levels at $3.50 to $3.60 share with high volume.

Traders should now look for long-biased trades in MTSN as long as it's trending above some key near-term support levels at $3.40 or at $3.34 and then once it sustains a move or close above those breakout levels share with volume that hits near or above 1.17 million shares. If that breakout triggers soon, then MTSN will set up to re-test or possibly take out its next major overhead resistance levels at $3.84 to $3.98, or even $4 to $4.20. If this stock clears $4.20 then it could make a run at its next major overhead resistance levels at $4.78.

Star Gas Partners

Star Gas Partners  (SGU) operates as a home heating oil and propane distributor and services provider to residential and commercial customers in the U.S. This stock is trading up 3.9% to $7.56 in Thursday's trading session.

Thursday's Range: $7.22-$7.47
52-Week Range: $5.35-$7.83
Thursday's Volume: 37,000
Three-Month Average Volume: 93,359

From a technical perspective, SGU is ripping sharply higher here right off its 50-day moving average of $7.19 with lighter-than-average volume. This sharp spike to the upside on Thursday is now quickly pushing shares of SGU within range of triggering a major breakout trade above some key near-term overhead resistance levels. That breakout will hit if SGU manages to take out some near-term overhead resistance levels at $7.50 to its 52-week high of $7.83 a share with high volume.

Traders should now look for long-biased trades in SGU as long as it's trending above some key near-term support levels at $7 or at $6.96 and then once it sustains a move or close above those breakout levels with volume that hits near or above 93,359 shares. If that breakout begins soon, then SGU will set up to enter new 52-week-high territory above $7.83, which is bullish technical price action. Some possible upside targets off that breakout are $9 to $10 a 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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