4 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.

iCAD

iCAD  (ICAD) provides image analysis, workflow solutions, and radiation therapy for the early identification and treatment of cancer in the U.S. and internationally. This stock is trading up 4.5% to $3.54 in Thursday's trading session.

  • Thursday's Range: $3.40-$3.63
  • 52-Week Range: $3.22-$11.63
  • Thursday's Volume: 51,000
  • Three-Month Average Volume: 253,813

From a technical perspective, iCAD is spiking sharply higher here and displaying relative strength versus the overall market weakness with lighter-than-average volume. This move has started to push shares of iCAD into its 20-day moving average of $3.54 a share and 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 its 50-day moving average of $3.79 to more near-term resistance levels at $3.86 to $3.91 with high volume.

Traders should now look for long-biased trades in iCAD as long as it's trending above its new 52-week low of $3.22 and then once it sustains a move or close above those breakout levels with volume that hits near or above 253,813 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 $4.18 to $4.50, or even $4.70 to $5 a share.

Voltari

Voltari  (VLTC), together with its subsidiaries, provides relevance-driven merchandising, digital marketing, and advertising solutions, primarily over smartphones and other mobile devices to brands, marketers, and advertising agencies. This stock is trading up 8.7% to $8.02 in Thursday's trading session.

  • Thursday's Range: $7.16-$8.20
  • 52-Week Range: $0.63-$21.75
  • Thursday's Volume: 716,000
  • Three-Month Average Volume: 2.23 million

From a technical perspective, Voltari is displaying large relative strength here as shares rip sharply higher to the upside right above its 50-day moving average of $6.80 with decent upside volume flows. This strong spike to the upside in a weak tape is now starting to push shares of Voltari within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will trigger if this stock manage to take out some key near-term overhead resistance levels at $8.50 to $8.85 with high volume.

Traders should now look for long-biased trades in Voltari as long as it's trending above its 50-day moving average of $6.80 or above its 20-day moving average of $6.68 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.23 million 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 levels at $10.80 to $12.95 a share.

MagnaChip

MagnaChip  (MX), together with its subsidiaries, designs and manufactures analog and mixed-signal semiconductor products for consumer, computing, communication, industrial, automotive, and Internet of things applications worldwide. This stock is trading up 1.7% to $8.55 in Thursday's trading session.

  • Thursday's Range: $8.19-$8.59
  • 52-Week Range: $4.89-$15.72
  • Thursday's Volume: 54,000
  • Three-Month Average Volume: 475,435

From a technical perspective, MagnaChip is spiking modestly higher here right off its 20-day moving average of $8.17 with lighter-than-average volume. This stock has been uptrending very strong over the last three months, with shares moving higher from its low of $5 to its recent high of $9.13. During that uptrend, shares of MagnaChip have been consistently making higher lows and higher highs, which is bullish technical price action. This spike off its 20-day is now starting to push shares of MagnaChip within range of triggering a major breakout trade. That breakout will trigger if this stock manages to take out its 200-day moving average of $8.99 and then once it clears more key overhead resistance at $9.13 with high volume.

Traders should now look for long-biased trades in MagnaChip as long as it's trending above its 20-day at $8.17 or above $8 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 475,435 shares. If that breakout kicks off soon, then this stock will set up to re-fill some of its previous gap-down-day zone from February that started around $15 a share.

Netlist

Netlist  (NLST) designs, manufactures, and sells a range of logic-based memory subsystems for the datacenter, storage, and high-performance computing markets worldwide. This stock is trading up 5.7% to 55 cents per share in Thursday's trading session.

  • Thursday's Range: $0.52-$0.55
  • 52-Week Range: $0.50-$2.09
  • Thursday's Volume: 45,000
  • Three-Month Average Volume: 222,195

From a technical perspective, Netlist is spiking sharply higher here right above some near-term support at 53 cents per share with lighter-than-average volume. This stock has been attempting to carve out a major bottoming chart pattern over the last two months, with shares finding buying interest each time it has trade down to 53 or 51 cents per share. Shares of Netlist are now starting to trend higher right above those key support levels and it's quickly moving within range of triggering a major breakout trade. That trade will hit if this stock manages to clear both its 20-day moving average of 56 cents and its 50-day moving average of 57 cents and then once it takes out more key resistance at 60 cents per share with high volume.

Traders should now look for long-biased trades in Netlist as long as it's trending above key support at 53 to 50 cents per share and then once it sustains a move or close above those breakout levels with volume that registers near or above 222,195 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 63 to 70 cents, or even 76 cents per 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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