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.


Infosonics  (IFON) designs, develops, manufactures and sells wireless telecommunication products and accessories to wireless carriers, distributors and OEMs. This stock is trading up 2.7% to $2.96 share in Thursday's trading session.

Thursday's Range: $2.83-$2.97
52-Week Range: $1.06-$3.84
Thursday's Volume: 30,000
Three-Month Average Volume: 173,553

From a technical perspective, Infosonics is trending notably higher here right off some near-term support at $2.80 with lighter-than-average volume. This stock has been uptrending over the last six months, with shares moving higher from its low of $1.06 to its recent high of $3.17 a share. During that uptrend, shares of Infosonics have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed this stock within range of triggering a major breakout trade. That trade will hit if this stock manages to take out some key overhead resistance levels at $3.17 to $3.18 with high volume.

Traders should now look for long-biased trades in Infosonics as long as it's trending above some near-term support at $2.80 or above its 50-day moving average of $2.56 and then once it sustains a move or close above those breakout levels with volume that registers near or above 173,553 shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $3.84.

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