4 Tech Stocks Under $10 to Trade for Breakouts

 

DELAFIELD, Wis. (Stockpickr) – As part of your daily routine as an active trader or investor, it's important to track 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 who want to capture some of that massive volatility. Stocks that are making big-percentage moves 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.

MobileIron

MobileIron (MOBL) provides a purpose-built mobile IT platform that enables enterprises to secure and manage mobile applications, content and devices. This stock is trading up 1.8% to $6.49 in Tuesday's trading session.

Tuesday's Range: $6.36-$6.57
52-Week Range: $5.88-$12.96
Tuesday's Volume: 192,000
Three-Month Average Volume: 588,597

From a technical perspective, MobileIron is jumping higher here and breaking out above some near-term overhead resistance at $6.43 with lighter-than-average volume. This stock recently formed a major bottoming chart pattern, after shares found buying interest over the last two months at $5.88, $5.93 and $5.90 a share. Following that bottom, shares of MobileIron have started to trend higher and it's now moving within range of triggering a major breakout trade. That trade will trigger if this stock manages to take out some key near-term overhead resistance levels at $6.66 to $6.67 with high volume.

Traders should now look for long-biased trades in MobileIron as long as it's trending above its 20-day moving average of $6.13 and then once it sustains a move or close above those breakout levels with volume that registers near or above 588,597 shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $7 to $7.50. Any high-volume move above $7.50 will then give MobileIron a chance to re-fill some of its previous gap-down-day zone from April that started near $9.75.

Planar Systems

Planar Systems (PLNR), together with its subsidiaries, develops, manufactures and markets electronic display products and systems. This stock is trading up 9.1% to $4.47 in Tuesday's trading session.

Tuesday's Range: $4.25-$4.54
52-Week Range: $2.14-$9.17
Tuesday's Volume: 343,000
Three-Month Average Volume: 236,962

From a technical perspective, Planar Systems is ripping sharply higher here right off its 20-day moving average of $4.27 with above-average volume. This stock recently formed a double bottom chart, after shares found buying interest at $3.97 to $4.03 a share. Following that bottom, shares of Planar Systems have now started to rip higher and move within range of triggering a major breakout trade. That trade will hit if this stock manages to take out some key near-term overhead resistance at $4.53 with high volume.

Traders should now look for long-biased trades in Planar Systems as long as it’s trending above its 20-day at $4.27 and then once it sustains a move or close above $4.53 with volume that hits near or above 236,962 shares. If that breakout gets set off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance level at its 50-day moving average of $5.12. Any high-volume move above $5.12 will then give this stock a chance to re-fill some of its previous gap-down-day zone from May that started at $6.26 a share.

TeleCommunication Systems

TeleCommunications Systems (TSYS) develops and delivers wireless communication technology in the U.S., Europe, Latin America, Africa and Asia. This stock is trading up 3.2% to $3.35 in Tuesday's trading session.

Tuesday's Range: $3.23-$3.35
52-Week Range: $2.72-$3.94
Tuesday's Volume: 75,000
Three-Month Average Volume: 188,450

From a technical perspective, TeleCommunications Systems is ripping higher here right above some near-term support at $3.20 and back above its 50-day moving average of $3.35 with lighter-than-average volume. This stock has been uptrending a bit over the last month and change, with shares moving higher from its low of $3.03 to its recent high of $3.42. During that uptrend, shares of TeleCommunications Systems has been making mostly higher lows and higher highs, which is bullish technical price action. This spike to the upside on Tuesday is now starting to push this stock within range of triggering a near-term breakout trade. That trade will hit if this stock manages to take out some key near-term overhead resistance at $3.42 to around $3.50 with high volume.

Traders should now look for long-biased trades in TeleCommunications Systems as long as it's trending above some key near-term support at $3.20 or above its 200-day at $3.14 and then once it sustains a move or close above those breakout levels with volume that hits near or above 188,450 shares. If that breakout gets started soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $3.85 to its 52-week high of $3.94.

Sonus Networks

Sonus Networks (SONS) provides networked solutions for communications service providers and enterprises. This stock is trading up 2.8% to $7.90 in Tuesday's trading session.

Tuesday's Range: $7.65-$7.93
52-Week Range: $7.50-$21.25
Tuesday's Volume: 424,000
Three-Month Average Volume: 1.59 million

From a technical perspective, Sonus Networks is spiking higher here right above some near-term support at $7.58 and back above its 50-day moving average of $7.83 with lighter-than-average volume. This stock has been consolidating and trending sideways over the last two months, with shares moving between $7.57 on the downside and $8.05 on the upside. This spike higher on Tuesday is now starting to push shares of Sonus Networks within range of triggering a big breakout trade above the upper-end of its recent sideways trending chart pattern. That trade will hit if this stock manages to take out some key near-term overhead resistance levels at $8.04 to $8.05 with high volume.

Traders should now look for long-biased trades in Sonus Networks as long as it's trending above some key near-term support levels at $7.58 to $7.57 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.59 million shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $8.55 to its gap-down-day high from March at around $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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