4 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.

Aoxing Pharmaceutical

Aoxing Pharmaceutical  (AXN), a specialty pharmaceutical company, researches, develops, manufactures, and distributes various narcotic, pain-management, and addiction treatment pharmaceutical products primarily in the People's Republic of China. This stock is trading up 4% to $1.67 in Tuesday's trading session.

Tuesday's Range: $1.61-$1.69
52-Week Range: $0.18-$2.58
Tuesday's Volume: 70,000
Three-Month Average Volume: 630,439

From a technical perspective, AXN is spiking notably higher here right above some near-term support at $1.46 with lighter-than-average volume. This move to the upside on Tuesday is starting to push shares of AXN within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will trigger if AXN manages to take out some key near-term overhead resistance levels at its 50-day moving average of $1.67 and then above more key resistance levels at $1.70 to $1.80 with high volume.

Traders should now look for long-biased trades in AXN as long as it's trending above Tuesday's intraday low of $1.60 or above more near-term support at $1.46 and then once it sustains a move or close above those breakout levels with volume that registers near or above 630,439 shares. If that breakout kicks off soon, then AXN will set up to re-test or possibly take out its next major overhead resistance levels at $2 to $2.08, or even $2.29 to its 52-week high of $2.58.

CollabRx

CollabRx  (CLRX) provides cloud-based expert systems to inform healthcare decision-making. This stock is trading up 6.9% to 77 cents per share in Tuesday's trading session.

Tuesday's Range: $0.74-$0.79
52-Week Range: $0.51-$3.01
Tuesday's Volume: 29,000
Three-Month Average Volume: 381,959

From a technical perspective, CLRX is ripping to the upside here right off some near-term support at 70 cents per share with lighter-than-average volume. This stock recently formed a major bottoming chart pattern at 66 cents, 67 cents and 70 cents per share. Following that bottom, shares of CLRX have now started to rip to the upside and it's beginning to move within range of triggering a big breakout trade. That trade will hit if CLRX manages to take out some key near-term overhead resistance levels at 80 cents to 85 cents per share with high volume.

Traders should now look for long-biased trades in CLRX as long as it's trending above some key near-term support at 70 cents per share and then once it sustains a move or close above those breakout levels with volume that registers near or above 381,959 shares. If that breakout hits soon, then CLRX will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of 89 cents to its 200-day moving average of 99 cents. Any high-volume move above those levels and over $1 a share will then give CLRX a chance to tag its next major overhead resistance levels at $1.17 to $1.26.

TCP International

TCP International  (TCPI), together with its subsidiaries, designs, develops, manufactures, and markets lamps, fixtures, and Internet-based lighting control solutions to the retail, commercial, and industrial customers worldwide. This stock is trading up 6.4% to $4.16 in Tuesday's trading session.

Tuesday's Range: $3.91-$4.17
52-Week Range: $1.76-$11.40
Tuesday's Volume: 117,000
Three-Month Average Volume: 321,727

From a technical perspective, TCPI is ripping to the upside here and breaking out above some near-term overhead resistance at $4.10 with lighter-than-average volume. This breakout has now started to push shares of TCPI above the upper-end of its recent sideways trending chart pattern. That said, shares of TCPI still have one last resistance level to clear to trigger a much bigger breakout trade. That trade will hit if TCPI manages to take out some key near-term overhead resistance at $4.46 with high volume.

Traders should now look for long-biased trades in TCPI as long as it's trending above Tuesday's intraday low of $3.91 and then once it sustains a move or close above $4.10 to $4.46 with volume that hits near or above 321,727 shares. If that breakout gets underway soon, then TCPI will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $5.40 to $6 a share, or even $6.50 to $7 a share.

Midstates Petroleum

Midstates Petroleum  (MPO) engages in the exploration, development, and production of oil, natural gas liquids, and natural gas in the U.S. This stock is trading up 2.9% to $1.21 in Tuesday's trading session.

Tuesday's Range: $1.14-$1.21
52-Week Range: $0.72-$7.50
Tuesday's Volume: 245,000
Three-Month Average Volume: 1.12 million

From a technical perspective, MPO is trending notably higher here right above its 50-day moving average of $1.10 with lighter-than-average volume. This stock recently formed a major bottoming chart pattern, after shares found buying interest at $1.04 to $1.05 and right above its 50-day moving average. Shares of MPO are now starting to trend within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will trigger if MPO manages to take out some key near-term overhead resistance levels at $1.25 to $1.30 with high volume.

Traders should now look for long-biased trades in MPO as long as it's trending above its 50-day moving average of $1.10 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.12 million shares. If that breakout hits soon, then MPO will set up to re-test or possibly take out its next major overhead resistance levels at $1.40 to $1.62, or even $1.90.

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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