4 Big-Volume Stocks Triggering Breakout Trades

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.

Town Sports International

CLUB Price Chart CLUB Price data by YCharts

Town Sports International  (CLUB), together with its subsidiaries, owns and operates fitness clubs in the Northeast and Mid-Atlantic regions of the U.S. This stock traded up 6.3% to $3.18 in Tuesday's trading session.

Tuesday's Range: $2.91-$3.18
52-Week Range: $2.54-$7.69
Tuesday's Volume: 100,000
Three-Month Average Volume: 137,333

From a technical perspective, Town Sports International spiked sharply higher on Tuesday right off its 20-day moving average of $2.97 with decent upside volume flows. This stock recently crashed hard from around $7 a share to its new 52-week low of $2.54 a share. Following that crash, shares of Town Sports International have now started to rebound sharply higher off that $2.54 low with strong upside volume flows. That rebound and spike higher on Tuesday is now quickly pushing this stock within range of triggering a major breakout trade. That breakout will trigger if this stock manages to take out some key near-term overhead resistance levels at $3.31 to $3.50 with high volume.

Traders should now look for long-biased trades in Town Sports International as long as it's trending above Tuesday's intraday low of $2.91 and then once it sustains a move or close above those breakout levels with volume that hits near or above 137,333 shares. If that breakout develops soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $4 to $4.10 a share, or even its 50-day moving average of $4.45 a share.

Lpath

LPTN Price Chart LPTN Price data by YCharts

Lpath  (LPTN), a biotechnology company, focuses on the discovery and development of lipidomic-based therapeutic antibodies to treat a range of human diseases in the U.S. This stock traded up 6.1% to 28 cents per share in Tuesday's trading session.

Tuesday's Range: $0.27-$0.29
52-Week Range: $0.25-$4.19
Tuesday's Volume: 1.70 million
Three-Month Average Volume: 435,494

From a technical perspective, Lpath ripped sharply higher on Tuesday right into its 20-day moving average of 29 cents per share with strong upside volume flows. This stock recently formed a double bottom chart pattern at around 25 cents per share. Since that bottom, this stock has now started to spike sharply higher and is quickly moving within range of triggering a major breakout trade. That breakout will trigger if shares of Lpath manage to take out some key near-term overhead resistance levels at 30 cents to 32 cents per share and then above more resistance at 34 cents per share with high volume.

Traders should now look for long-biased trades in Lpath as long as it's trending above some near-term support at 27 cents per share or above those double bottom support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 435,494 shares. If that breakout gets started soon, then this stock will set up to retest or possibly take out its next major overhead resistance level at close to 50 cents per share. Any high-volume move above 50 cents per share will then give shares of Lpath a chance to re-fill some of its previous gap-down-day zone from May that started near $1.75 a share.

Must Read: 5 Rocket Stocks to Beat the Summer Doldrums

Northern Oil and Gas

NOG Price Chart NOG Price data by YCharts

Northern Oil and Gas  (NOG), an independent energy company, engages in the acquisition, exploration, development and production of oil and natural gas properties in the U.S. This stock traded up 3.2% to $7.25 in Tuesday's trading session.

Tuesday's Range: $7.01-$7.28
52-Week Range: $4.79-$17.10
Tuesday's Volume: 1.16 million
Three-Month Average Volume: 1.53 million

From a technical perspective, Northern Oil and Gas spiked sharply higher on Tuesday right off its 20-day moving average of $7.02 with decent upside volume flows. This stock recently formed a double bottom chart pattern, after shares of Northern Oil and Gas found buying interest at $6.73 and $6.75 a share. Following that bottom, shares of Northern Oil and Gas have now started to spike to the upside and it's now quickly moving within range of triggering a big breakout trade. That breakout will trigger if this stock manages to take out some near-term overhead resistance at $7.46 and then once it clears its 50-day moving average of $7.57 with high volume.

Traders should now look for long-biased trades in Northern Oil and Gas as long as it's trending above those double bottom support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.53 million 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 $8.25 to its 200-day moving average of $8.82 a share, or even $9.50 a share.

Aeropostale

ARO Price ChartARO Price data by YCharts

Aeropostale  (ARO) operates as a specialty retailer of casual apparel and accessories for teenagers. This stock traded up 3.3% to $1.85 in Tuesday's trading session.

Tuesday's Range: $1.80-$1.88
52-Week Range: $1.70-$4.39
Tuesday's Volume: 1.31 million
Three-Month Average Volume: 1.69 million

From a technical perspective, Aeropostale spiked to the upside on Tuesday right above some near-term support at $1.77 with decent upside volume flows. This stock recently formed a higher low at $1.77 versus its previous low at $1.70. So far, that higher low has held, and now shares of Aeropostale are starting to trend to the upside and move within range of triggering a major breakout trade. That breakout will trigger if this stock manages to take out its 20-day moving average of $1.89 to some more key overhead resistance at $1.99 with high volume.

Traders should now look for long-biased trades in Aeropostale as long as it's trending above that recent higher low at $1.77 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.69 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 $2.20 to around $2.60.

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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