4 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.

GlobeImmune

  • Thursday's Range: $2.39-$2.71
  • 52-Week Range: $1.43-$11.16
  • Thursday's Volume: 43,000
  • Three-Month Average Volume: 63,091

GlobeImmune  (GBIM) , a biopharmaceutical company, focuses on developing therapeutic products for cancer and infectious diseases based on proprietary Tarmogen platform. This stock traded up 7.2% to $2.65 in Thursday's trading session.

From a technical perspective, GlobeImmune ripped higher on Thursday right off both its 20-day moving average of $2.41 and its 50-day moving average of $2.43 with lighter-than-average volume. This stock recently formed a double bottom chart at $2.03 to $2.04 a share. Following that bottom, shares of GlobeImmune have started to rip sharply higher and it's now quickly moving within range of triggering a major breakout trade. That trade will trigger if this stock manages to take out some near-term overhead resistance levels at $2.87 to $2.88 and then above more resistance at $3 with high volume.

Traders should now look for long-biased trades in GlobeImmune as long as it's trending above its 20-day moving average of $2.41 and then once it sustains a move or close above those breakout levels with volume that hits near or above 63,091 shares. If that breakout kicks off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $3.48 to around $4 a share.

Carbylan Therapeutics

  • Thursday's Range: $4.10-$5.50
  • 52-Week Range: $4.10-$9.22
  • Thursday's Volume: 251,000
  • Three-Month Average Volume: 101,095

Carbylan Therapeutics  (CBYL) , a specialty pharmaceutical company, focuses on the development and commercialization of novel and proprietary combination therapies. This stock traded up 4.3% to $4.99 in Thursday's trading session.

From a technical perspective, Carbylan Therapeutics printed a new all-time low on Thursday of $4.10 a share and then reversed its downtrend and closed higher with strong upside volume flows. This high-volume reversal is now quickly pushing shares of Carbylan Therapeutics 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 near-term overhead resistance levels at $5.50 to $5.69 and then above its 20-day moving average of $5.88 with high volume.

Traders should now look for long-biased trades in Carbylan Therapeutics as long as it's trending above its all-time low of $4.10 and then once it sustains a move or close above those breakout levels with volume that hits near or above 101,095 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 its 50-day moving average of $6.61 to around $7 a share.

Atossa Genetics

  • Thursday's Range: $0.77-$0.83
  • 52-Week Range: $0.70-$2.65
  • Thursday's Volume: 150,000
  • Three-Month Average Volume: 200,640

Atossa Genetics  (ATOS)  operates as a health care company that focuses on the development of a suite of laboratory services, medical devices and therapeutics for breast cancer in the U.S. This stock traded up 7% to 83 cents per share in Thursday's trading session.

From a technical perspective, Atossa Genetics ripped sharply higher on Thursday and displayed relative strength versus the some mild market weakness 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 70 cents per share to its intraday high on Thursday of 83 cents per share. During that uptrend, shares of Atossa Genetics have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed this stock 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 84 cents to its 20-day moving average of 87 cents per share with high volume.

Traders should now look for long-biased trades in Atossa Genetics as long as it's trending above its recent low of 70 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 200,640 shares. If that breakout fires off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at 92 cents to $1, or even its 50-day moving average of $1.01 to $1.04 a share.


Sanchez Energy

  • Thursday's Range: $5.65-$6.17
  • 52-Week Range: $4.48-$32.48
  • Thursday's Volume: 1.82 million
  • Three-Month Average Volume: 2.21 million

Sanchez Energy  (SN) , an independent exploration and production company, focuses on the acquisition, exploration and development of unconventional oil and natural gas resources in the onshore U.S. Gulf Coast. This stock traded up 6.1% to $6.01 in Thursday's trading session.

From a technical perspective, Sanchez Energy ripped sharply higher on Thursday right above some near-term support at $5.24 with decent upside volume flows. This stock has been downtrending badly over the last five months, with shares moving lower from its high of $15.85 to its new 52-week low of $4.48. During that downtrend, shares of Sanchez Energy have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock has recently started to rebound higher off that $4.48 low and it's now quickly moving within range of triggering a near-term breakout trade. That trade will trigger if this stock manages to take out some near-term overhead resistance levels at its 20-day moving average of $6.36 to more resistance at $6.73 with high volume.

Traders should now look for long-biased trades in Sanchez Energy as long as it's trending above some near-term support at $5.24 and then once it sustains a move or close above those breakout levels with volume that registers near or above 2.21 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 its 50-day moving average of $7.32 to $7.87, or even $8 to $8.50 a share.

Disclosure: 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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