3 Stocks Under $10 Making Big Breakout Moves

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.

Career Education

CECO ChartCECO data by YCharts

Career Education (CECO) operates colleges, institutions and universities that provide education to student population in various career-oriented disciplines through online, on-ground and hybrid learning program offerings in the U.S. This stock is trading up 2.6% to $3.50 in Tuesday's trading session.

  • Tuesday's Range: $3.38-$3.57
  • 52-Week Range: $3.15-$7.10
  • Tuesday's Volume: 196,000
  • Three-Month Average Volume: 637,856

From a technical perspective, Career Education is spiking higher here and counter-trending versus the overall market weakness right off some near-term support at $3.36 with lighter-than-average volume. This stock has been uptrending a bit over the last few weeks, with shares moving higher from its low of $3.15 to its recent high of $3.57. During that uptrend, shares of Career Education have been making mostly higher lows and higher highs, which is bullish technical price action.

This move to the upside on Tuesday is now quickly pushing shares of Career Education 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 levels at $3.57 to its 50-day at $3.74 and then above more resistance at $3.78 with high volume.

Traders should now look for long-biased trades in Career Education as long as it's trending above some near-term support at $3.36 and then once it sustains a move or close above those breakout levels with volume that registers near or above 637,856 shares. If that breakout triggers soon, then this stock will set up to retest or possibly take out its next major overhead resistance levels at $4 to $4.15, or even $4.30 to $4.50 a share.

Oclaro

OCLR ChartOCLR data by YCharts

Oclaro (OCLR) designs, manufactures and markets lasers and optical components, modules and subsystems for the optical communications, industrial and consumer laser markets worldwide. This stock is trading up 6.8% to $2.26 in Tuesday's trading session.

  • Tuesday's Range: $2.12-$2.26
  • 52-Week Range: $1.31-$2.85
  • Tuesday's Volume: 164,000
  • Three-Month Average Volume: 1.23 million

From a technical perspective, Oclaro is ripping sharply higher here and showing relative strength vs. the overall market weakness right above some near-term support at $2.11 with lighter-than-average volume. This jump to the upside on Tuesday is now quickly pushing shares of Oclaro within range of triggering a big breakout trade above some key near-term overhead resistance level. That breakout will trigger if this stock manages to take out some key near-term overhead resistance levels at its 50-day moving average of $2.36 and then above more resistance at $2.44 with high volume.

Traders should now look for long-biased trades in Oclaro as long as it's trending above some near-term support at $2.11 or at $2.06 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.23 million 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 $2.70 to its 52-week high of $2.85.

Northern Oil and Gas

NOG ChartNOG 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 is trading up 5% to $5.57 in Tuesday's trading session.

  • Tuesday's Range: $5.26-$5.68
  • 52-Week Range: $4.79-$17.09
  • Tuesday's Volume: 940,000
  • Three-Month Average Volume: 1.58 million

From a technical perspective, Northern Oil and Gas is ripping sharply higher here right above some near-term support at $5.25 with strong upside volume flows. This stock recently attempted to carve out a double bottom chart pattern at $5.13 to $5.25 a share. Shares of Northern Oil and Gas are now starting to spike higher right above those support levels and it's quickly moving within range of triggering a near-term breakout trade. That breakout will trigger if this stock manages to take out some near-term overhead resistance at $5.75 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 $5.75 with volume that hits near or above 1.58 million shares. If that breakout begins soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $6 to $6.30, or even its 50-day moving average at $6.66.

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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