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.

Tuesday Morning
  • Thursday's Range: $6.79-$7.26
  • 52-Week Range: $4.86-$22.88
  • Thursday's Volume: 505,000
  • Three-Month Average Volume: 795,409

Tuesday Morning  (TUES) operates as a retailer of upscale decorative home accessories, housewares, seasonal goods and gifts in the U.S. This stock is trading up 5.2% to $7.22 in Thursday's trading session.

From a technical perspective, Tuesday Morning is spiking higher here with decent upside volume flows. This stock has been uptrending over the last few weeks, with shares moving higher from its low of $4.86 to its recent high of $7.46. During that uptrend, this stock has been consistently making higher lows and higher highs, which is bullish technical price action. This spike higher on Thursday is now quickly pushing shares of Tuesday Morning within range of triggering a major breakout trade. That trade will trigger if this stock manages to take out some key near-term overhead resistance at $7.46 with high volume.

Traders should now look for long-biased trades in Tuesday Morning as long as it's trending above $6.50 and then once it sustains a move or close above $7.46 with volume that hits near or above 795,409 shares. If that breakout triggers soon, then this stock will set up to re-fill some of its recent gap-down-day zone that started above $10 a share.

WaferGen Bio-systems
  • Thursday's Range: $1.15-$1.25
  • 52-Week Range: $1.15-$5.89
  • Thursday's Volume: 127,000
  • Three-Month Average Volume: 44,345

WaferGen Bio-systems  (WGBS) develops, manufactures, and sells systems for gene expression quantification, genotyping, and stem cell research for the life sciences and pharmaceutical drug discovery industries in the U.S., Canada, Europe, and the Asia Pacific. This stock is trading up 4.4% to $1.23 in Thursday's trading session.

From a technical perspective, WaferGen Bio-systems is spiking higher here right above its recent low of $1.17 with above-average volume. This spike to the upside is coming off extremely oversold levels, since the current relative strength index reading for WaferGen Bio-systems is 22. Oversold can always get more oversold, but it's also a level a stock can experience a powerful bounce higher from. This trend to the upside on Thursday is now starting to push this stock within range of triggering a big breakout trade. That trade will trigger if this stock manage to take out some key near-term overhead resistance levels at $1.30 to $1.34 with high volume.

Traders should now look for long-biased trades in WaferGen Bio-systems as long as it's trending above Thursday's intraday low of $1.15 and then once it sustains a move or close above those breakout levels with volume that hits near or above 44,345 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 $1.50 to $1.63, or even $1.75 to $2 a share.

Bebe Stores
  • Thursday's Range: $1.74-$1.85
  • 52-Week Range: $1.68-$4.00
  • Thursday's Volume: 80,000
  • Three-Month Average Volume: 312,898

Bebe Stores  (BEBE), together with its subsidiaries, designs, develops, and produces a range of women's apparel and accessories under the bebe, BEBE SPORT, and bbsp brand names. This stock is trading up 5.8% to $1.82 in Thursday's trading session.

From a technical perspective, Bebe Stores is spiking notably higher here right into its 20-day moving average of $1.82 with lighter-than-average volume. This stock has been attempting to carve out a double bottom over the last month or so, with shares finding buying interest at $1.73 to $1.68 a share. This stock 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 trigger if this stock manages to take out some near-term overhead resistance levels at its 50-day moving average of $1.92 to $2 a share with high volume.

Traders should now look for long-biased trades in Bebe Stores as long as it's trending above those recent double bottom support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 312,898 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 $2.15 to $2.16, or even $2.40 to $2.60 a share.

Penn Virginia

  • Thursday's Range: $0.80-$0.94
  • 52-Week Range: $0.71-$15.04
  • Thursday's Volume: 2.12 million
  • Three-Month Average Volume: 4.81 million

Penn Virginia  (PVA), an independent oil and gas company, explores, develops, and produces crude oil, natural gas liquids, and natural gas in various onshore regions of the U.S. This stock is trading up 17.4% to 93 cents per share in Thursday's trading session.

From a technical perspective, Penn Virginia is ripping sharply higher here and breaking out above some near-term overhead resistance levels at 88 cents to its 20-day moving average of 93 cents per share with lighter-than-average volume. This large move to the upside on Thursday is now starting to push shares of Penn Virginia within range of triggering a much bigger breakout trade above some key near-term overhead resistance levels. That trade will trigger if this stock manages to take out some near-term overhead resistance levels at $1 to $1.09 with high volume.

Traders should now look for long-biased trades in Penn Virginia as long as it's trending above Thursday's intraday low of 80 cents per share and then once it sustains a move or close above those breakout levels with volume that registers near or above 4.81 million shares. If that breakout takes hold soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at around $1.30 to $1.50, or even $2 a share.

TrueCar
  • Thursday's Range: $4.92-$5.26
  • 52-Week Range: $4.01-$25.00
  • Thursday's Volume: 330,000
  • Three-Month Average Volume: 1.64 million

TrueCar  (TRUE) operates as an Internet-based information, technology, and communication services company. This stock is trading up 5.5% to $5.20 in Thursday's trading session.

From a technical perspective, TrueCar is spiking sharply higher here with lighter-than-average volume. This stock has been uptrending a bit over the last few trading sessions, with shares moving higher from its low of $4.01 to its intraday high of $5.27 a share. During that uptrend, this stock has been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TrueCar within range of triggering a major breakout trade above some key near-term 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 $5.52 to more resistance at $5.89 with high volume.

Traders should now look for long-biased trades in TrueCar as long as it's trending above some near-term support at $4.75 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.64 million shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out its next major overhead resistance level at $7.04 to $7.50. Any high-volume move above $7.50 will then give this stock a chance to re-fill some of its previous gap-down-day zone from July that started near $11 a share.

Control4
  • Thursday's Range: $7.58-$8.34
  • 52-Week Range: $7.02-$16.75
  • Thursday's Volume: 139,000
  • Three-Month Average Volume: 279,417

Control4  (CTRL) provides automation and control solutions for the connected home in the U.S., Canada, and internationally. This stock is trading up 4.9% to $8.24 in Thursday's trading session.

From a technical perspective, Control4 is ripping sharply higher here right off some near-term support at $7.50 with lighter-than-average volume. This move to the upside n Thursday has now pushed shares of Control4 into breakout territory, since the stock has cleared some near-term overhead resistance at $8 a share. Shares of Control4 are now quickly moving within range of triggering another big breakout trade. That breakout will trigger if this stock manages to take out both its 50-day and 20-day moving averages which sit at $8.30 a share 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 $7.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 279,417 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 around $9 to $9.25, or even $9.40 to $10 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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