3 Stocks Under $10 Triggering 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.

StemCells

StemCells  (STEM), a biopharmaceutical company, researches, develops and commercializes cell-based therapeutics and related technologies for stem cell-based research and drug discovery and development. This stock is trading up 1% t 64 cents per share in Tuesday's trading session.

Tuesday's Range: $0.62-$0.64
52-Week Range: $0.54-$2.43
Tuesday's Volume: 464,000
Three-Month Average Volume: 1.33 million

From a technical perspective, STEM is spiking modestly higher here right above some key near-term support at 59 cents per share with lighter-than-average volume. This stock has been consolidating and trending sideways for the last few weeks, with shares moving between 59 cents on the downside and 65 cents on the upside. This consolidating is occurring after shares of STEM gapped down sharply lower around 85 cents to 53 cents per share with heavy downside volume. Shares of STEM are now starting to move within range of triggering a major breakout trade above the upper-end of its recent sideways trending chart pattern. That trade will hit if STEM manages to take out some key near-term overhead resistance at 65 cents per share with high volume.

Traders should now look for long-biased trades in STEM as long as it's trending above some key near-term support at 59 cents per share and then once it sustains a move or close above 65 cents per share with volume that registers near or above 1.33 million shares. If that breakout triggers soon, then STEM will set up to re-fill some of its previous gap-down-day zone from April that started near 85 cents per share.

MagnaChip Semiconductor

MagnaChip Semiconductor  (MX), together with its subsidiaries, designs and manufactures analog and mixed-signal semiconductor products for consumer, computer and communication applications. This stock is trading up 6.2% to $5.81 in Tuesday's trading session.

Tuesday's Range: $5.44-$5.85
52-Week Range: $4.89-$15.72
Tuesday's Volume: 229,000
Three-Month Average Volume: 783,095

From a technical perspective, MX is ripping to the upside here right off its 50-day moving average of $5.47 with lighter-than-average volume. This stock recently formed a double bottom chart pattern, after shares found buying interest at $4.89 and then at $5 a share. Following that bottom, shares of MX have now started to trend to the upside and this stock has pushed back above its 50-day moving average. Shares of MX are now starting to quickly move within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will trigger if MX manages to clear some near-term overhead resistance levels at $5.84 to $5.89 and then above $6.10 with high volume.

Traders should now look for long-biased trades in MX as long as it's trending above its 50-day at $5.47 or above more near-term support at $5 and then once it sustains a move or close above those breakout levels with volume that registers near or above 783,095 shares. If that breakout materializes soon, then MX will set up to re-test or possibly take out its next major overhead resistance levels at $7 to $8 a share. Any high-volume move over $8 will then give MX a chance to re-fill some of its previous gap-down-day zone from February that started at $15.

Cancer Genetics

Cancer Genetics  (CGIX), an oncology diagnostics company, focuses on developing and commercializing DNA-based tests and services to enhance and personalize the diagnosis, prognosis and treatment of targeted cancers in the U.S., India and China. This stock is trading up 5.9% to $9.67 in Tuesday's trading session.

Tuesday's Range: $9.24-$10.07
52-Week Range: $4.83-$12.67
Tuesday's Volume: 103,000
Three-Month Average Volume: 80,766

From a technical perspective, CGIX is spiking sharply higher here right off some near-term support at $9 and above its 50-day moving average of $8.72 with above-average volume. This rip to the upside on Tuesday is now starting to push shares of CGIX within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will hit if CGIX manages to take out some key near-term overhead resistance levels at $10 to $10.36 and then above $11.19 with high volume.

Traders should now look for long-biased trades in CGIX as long as it's trending above some near-term support at $9 or above its 50-day at $8.72 and then once it sustains a move or close above those breakout levels with volume that hits near or above 80,766 shares. If that breakout develops soon, then CGIX will set up to re-test or possibly take out its next major overhead resistance level at $11.50 to its 52-week high of $12.67.

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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