4 Stocks Under $10 to Trade for Breakouts

 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  (TUES)  operates as a retailer of upscale decorative home accessories, housewares, seasonal goods and gifts in the U.S. This stock is trading up 8.4% to $6.19 in Thursday's trading session.

  • Thursday's Range: $5.76-$6.22
  • 52-Week Range: $4.86-$22.88
  • Thursday's Volume: 533,000
  • Three-Month Average Volume: 778,182

From a technical perspective, Tuesday Morning is ripping sharply higher here right above some near-term support at $5.67 with decent upside volume flows. This strong move to the upside on Thursday has now pushed shares of Tuesday Morning into breakout territory, since the stock has cleared its 20-day moving average of $5.99 and some near-term overhead resistance at $6.07. This move is now quickly pushing this stock within range of triggering another big breakout trade. That trade will trigger if this stock manages to take out its next major overhead resistance level at $6.43 with high volume.

Traders should now look for long-biased trades in Tuesday Morning as long as it's trending some near-term support at $5.67 and then once it sustains a move or close above $6.43 with volume that hits near or above 778,182 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 $7.07 to $7.23, or even $7.83 a share.


Aeropostale  (ARO)  operates as a specialty retailer of casual apparel and accessories for 14 to 17 year-old young women and men. This stock is trading up 8% to 65 cents per share in Thursday's trading session.

  • Thursday's Range: $0.61-$0.66
  • 52-Week Range: $0.47-$4.39
  • Thursday's Volume: 597,000
  • Three-Month Average Volume: 1.54 million

From a technical perspective, Aeropostale is spiking sharply higher here right off its 20-day moving average of 58 cents per share with lighter-than-average volume. This spike to the upside on Thursday is now quickly pushing shares of Aeropostale 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 take out some near-term overhead resistance levels at 68 cents to 70 cents per share with high volume.

Traders should now look for long-biased trades in Aeropostale as long as it's trending above its 20-day moving average of 58 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.54 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 77 cents to its 50-day moving average of 84 cents per share, or even $1 a share.

Cadiz  (CDZI)  operates as a land and water resource development company in the U.S. This stock is trading up 10.4% to $3.82 Thursday's trading session.

  • Thursday's Range: $3.36-$3.82
  • 52-Week Range: $2.71-$11.93
  • Thursday's Volume: 70,000
  • Three-Month Average Volume: 257,909

From a technical perspective, Cadiz is ripping sharply higher here right above some near-term support at $3.20 with lighter-than-average volume. This stock has been uptrending strong over the last few weeks, with shares moving sharply higher off its low of $2.71 to its recent high of close to $4 a share. During that uptrend, this stock has been consistently making higher lows and higher highs, which is bullish technical price action. That uptrend is coming after a massive collapse for shares of Cadiz, which saw the stock plunged off its October high of $7.94 to that new low of $2.71. This spike to the upside on Thursday is now quickly pushing this stock within range of triggering a major breakout trade. That breakout will trigger if this stock manages to take out some near-term overhead resistance levels at $3.85 to just over $4 a share with high volume.

Traders should now look for long-biased trades in Cadiz as long as it's trending above some near-term support at $3.20 and then once it sustains a move or close above those breakout levels with volume that registers near or above 257,909 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 its 20-day moving average of $4.78 to just over $5 a share.


Sientra  (SIEN) , a medical aesthetics company, develops and sells medical aesthetics products to plastic surgeons in the U.S. This stock is trading up 5% $5.58 in Thursday's trading session.

  • Thursday's Range: $5.23-$5.75
  • 52-Week Range: $5.11-$26.67
  • Thursday's Volume: 220,000
  • Three-Month Average Volume: 362,062

From a technical perspective, Sientra is ripping notably higher here right above its new all-time low of $5.11 with decent upside volume flows. This stock has been downtrending badly over the last two months, with shares collapsing off its high of $24.46 to its new all-time low of $5.11 a share. During that downtrend, shares of Sientra 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 $5.11 low and it's quickly moving 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 $6 a share with high volume.

Traders should now look for long-biased trades in Sientra as long as it's trending above its all-time low of $5.11 and then once it sustains a move or close above some near-term resistance at $6 with volume that hits near or above 362,062 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 $6.74 to its 50-day moving average of $7.57 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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