3 Stocks Under $10 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.

Oramed Pharmaceuticals

ORMP Chart ORMP data by YCharts

Oramed Pharmaceuticals  (ORMP) engages in the research and development of pharmaceutical solutions for the use of orally ingestible capsules or pills for delivery of polypeptides. This stock is trading up 21% to $7.09 in Thursday's trading session.

Thursday's Range: $5.80-$7.31
52-Week Range: $3.71-$10.44
Thursday's Volume: 372,000
Three-Month Average Volume: 175,356

From a technical perspective, Oramed Pharmaceuticals is exploding sharply higher here right above some near-term support at $5.50 with strong upside volume flows. This large move to the upside on Thursday has now pushed shares of Oramed Pharmaceuticals back above all its key moving averages, from its 20-day to its 200-day. This stock is now quickly moving within range of triggering another major breakout trade. That trade will trigger if this stock manages to take out some key near-term overhead resistance levels at $7.50 to $7.91 with high volume.

Traders should now look for long-biased trades in Oramed Pharmaceuticals as long as it's trending above its 20-day moving average of $6.41 and then once it sustains a move or close above those breakout levels with volume that hits near or above 175,356 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 $9.84 to its 52-week high of $10.44.

Response Genetics

RGDX Chart RGDX data by YCharts

Response Genetics  (RGDX), a life sciences company, researches, develops, markets, and sells pharmacogenomic tests for use in the treatment of cancer in the U.S., Europe, and internationally. This stock is trading up 9.9% to 33 cents per share in Thursday's trading session.

Thursday's Range: $0.30-$0.34
52-Week Range: $0.18-$0.97
Thursday's Volume: 172,000
Three-Month Average Volume: 172,194

From a technical perspective, Response Genetics is spiking sharply higher here right off some near-term support at 30 cents per share with decent upside volume flows. This spike to the upside on Thursday has now started to push shares of Response Genetics right into its 50-day moving average of 33 cents per share. This stock is now starting to spike within range of triggering a near-term breakout trade above some key overhead resistance levels. That trade will trigger if this stock manages to take out some key near-term overhead resistance levels at 35 cents to 36 cents per share with high volume.

Traders should now look for long-biased trades in Response Genetics as long as it's trending above some key near-term support at 30 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 172,194 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 40 cents to 42 cents per share, or even 45 cents to 46 cents per share.

Jiayuan.com

DATE Chart DATE data by YCharts

Jiayuan.com  (DATE) operates an online dating platform in the People's Republic of China. This stock is trading up 4.1% to $7.25 in Thursday's trading session.

Thursday's Range: $7.00-$7.28
52-Week Range: $4.18-$9.48
Thursday's Volume: 41,000
Three-Month Average Volume: 226,857

From a technical perspective, Jiayuan.com is spiking notably higher here right off some near-term support at $6.96 with lighter-than-average volume. This stock has been attempting to carve out a major bottoming chart pattern over the last month, with shares finding buying interest at $6.93, $6.90 and $6.96 a share. Shares of Jiayuan.com is now starting to spike higher off those support levels and it's beginning to move within range of triggering a near-term breakout trade. That breakout will hit if this stock manages to take out some key near-term overhead resistance levels at its 20-day moving average of $7.36 to $7.79 with high volume.

Traders should now look for long-biased trades in Jiayuan.com as long as it's trending above those major bottom support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 226,857 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 $8.30 to $9 a share, or even its 52-week high of $9.48 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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