6 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.

LightPath Technologies

  • Thursday's Range: $1.63-$1.80
  • 52-Week Range: $0.80-$2.49
  • Thursday's Volume: 105,000
  • Three-Month Average Volume: 284,884

LightPath Technologies  (LPTH) designs, develops, manufactures and distributes optical components and assemblies. This stock is trading up 7.9% to $1.76 in Thursday's trading session.

From a technical perspective, LightPath Technologies is ripping sharply higher here back above its 50-day moving average of $1.67 and above its 20-day moving average of $1.75 with decent upside volume flows. This stock recently formed a double bottom chart pattern at $1.52 to $1.50 a share. Following that bottom, shares of LightPath Technologies have started to spike higher above those moving average and it's beginning to trend within range of triggering a near-term breakout trade. That trade will trigger if this stock manages to take out Thursday's intraday high of $1.80 to some near-term overhead resistance at $1.86 with high volume.

Traders should now look for long-biased trades in LightPath Technologies as long as it's trending above some near-term support at $1.60 and then once it sustains a move or close above those breakout levels with volume that hits near or above 284,884 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 $1.97 to $2.20, or even its 52-week high of $2.49 a share.

Amyris

  • Thursday's Range: $1.72-$1.83
  • 52-Week Range: $1.52-$4.50
  • Thursday's Volume: 254,000
  • Three-Month Average Volume: 349,312

Amyris  (AMRS) provides various alternatives to a range of petroleum-sourced products for the consumer care, specialty chemical and transportation fuel markets worldwide. This stock is trading up 2.3% to $1.76 in Thursday's trading session.

From a technical perspective, Amyris is spiking modestly higher here right off its 20-day moving average of $1.71 with decent upside volume flows. This stock has been uptrending a bit over the last few weeks, with shares moving higher from its new 52-week low of $1.52 to its recent high of $1.85. During that uptrend, this stock has been making mostly higher lows and higher highs, which is bullish technical price action. This move higher on Thursday is now starting to push shares of Amyris within range of triggering a major breakout trade. That trade will trigger if this stock manage to take out some key near-term overhead resistance levels at its 50-day moving average of $1.83 to some more key resistance levels at $1.85 to $1.90 with high volume.

Traders should now look for long-biased trades in Amyris as long as it's trending above its 20-day moving average of $1.71 and then once it sustains a move or close above those breakout levels with volume that hits near or above 349,2312 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 to $2.12, or even $2.18 to its 200-day moving average of $2.23 a share.

Barrick Gold

  • Thursday's Range: $6.65-$7.11
  • 52-Week Range: $6.52-$19.36
  • Thursday's Volume: 16.53 million
  • Three-Month Average Volume: 15 million

Barrick Gold  (ABX) produces and sells gold and copper. This stock is trading up 8.5% to $7.11 in Thursday's trading session.

From a technical perspective, Barrick Gold is ripping higher here right above its new 52-wek low of $6.52 with strong upside volume flows. This stock has been downtrending badly for the last three months, with shares moving lower from its high of $13.64 to its new 52-week low of $6.52. During that downtrend, shares of Barrick Gold have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock has now started to bounce off that $6.42 low and off oversold levels, and it's beginning to move 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 levels at $7.33 to $7.50 and then above its 20-day moving average of $7.82 with high volume.

Traders should now look for long-biased trades in Barrick Gold as long as it's trending above its new 52-week low of $6.52 and then once it sustains a move or close above those breakout levels with volume that hits near or above 15 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 $8.50 to $9, or even its 50-day moving average of $9.86 a share.

Precision Drilling

  • Thursday's Range: $4.82-$5.32
  • 52-Week Range: $4.53-$12.83
  • Thursday's Volume: 2.26 million
  • Three-Month Average Volume: 2.93 million

Precision Drilling  (PDS) provides oil and natural gas drilling and related services and products. This stock is trading up 6.6% to $5.29 in Thursday's trading session.

From a technical perspective, Precision Drilling is ripping higher here right off some near-term support at around $4.80 and back above its 20-day moving average of $5.27 with strong upside volume flows. This counter-trend spike to the upside versus the overall market weakness is now quickly pushing shares of Precision Drilling within range of triggering a big breakout trade above some near-term overhead resistance levels. That trade will hit if this stock manages to take out some key near-term overhead resistance levels at $5.36 to $5.51 and then over $5.75 with high volume.

Traders should now look for long-biased trades in Precision Drilling as long as it's trending above $5 or above some more near-term support levels at $4.80 to $4.67 and then once it sustains a move or close above those breakout levels with volume that registers near or above 2.93 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 $6.07 to its 50-day moving average of $6.12, or even its 200-day moving average of $6.34.

Pacific Drilling

  • Thursday's Range: $2.07-$2.24
  • 52-Week Range: $2.05-$9.98
  • Thursday's Volume: 400,000
  • Three-Month Average Volume: 941,850

Pacific Drilling  (PACD), together with its subsidiaries, operates as an offshore drilling contractor. This stock is trading up 3.9% to $2.22 in Thursday's trading session.

From a technical perspective, Pacific Drilling is spiking sharply higher here right above its new 52-week low of $2.05 with lighter-than-average volume. This counter-trend move to the upside in a weak tape is now quickly pushing shares of Pacific Drilling within range of triggering a near-term breakout trade above some key overhead resistance levels. That trade will trigger if this stock manages to clear some near-term overhead resistance levels at its 20-day moving average of $2.33 to $2.36 and then above more resistance at $2.50 with high volume.

Traders should now look for long-biased trades in Pacific Drilling as long as it's trending above its new 52-week low of $2.05 and then once it sustains a move or close above those breakout levels with volume that hits near or above 941,850 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 $2.83 to its 50-day moving average of $2.91, or even $3.25 a share.

Control4

  • Thursday's Range: $8.21-$8.66
  • 52-Week Range: $7.26-$16.75
  • Thursday's Volume: 138,000
  • Three-Month Average Volume: 291,477

Control4  (CTRL) provides automation and control solutions for the connected home in the U.S., Canada and internationally. This stock is trading up 1.9% to $8.53 in Thursday's trading session.

From a technical perspective, Control4 is spiking modestly higher here right above some near-term support at $8 and above its 20-day moving average of $7.81 with lighter-than-average volume. This relative strength versus the overall market weakness is now quickly pushing shares of Control4 within range of triggering a near-term breakout trade. 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 $8.63 to more resistance at $8.77 with high volume.

Traders should now look for long-biased trades in Control4 as long as it's trending above some near-term support at $8 or above its 20-day at $7.81 and then once it sustains a move or close above those breakout levels with volume that hits near or above 291,477 shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $9.40 to $10, or even $10.50 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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