4 Stocks Under $10 to Trade for Big 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.

Pieris Pharmaceuticals

  • Tuesday's Range: $1.57-$1.95
  • 52-Week Range: $1.54-$4.40
  • Tuesday's Volume: 305,000
  • Three-Month Average Volume: 234,149

Pieris Pharmaceuticals  (PIRS) , a clinical stage biopharmaceutical company, focuses on the discovery and development of Anticalin class biotherapeutics. This stock traded up 7.8% to $1.93 in Tuesday's trading session.

From a technical perspective, Pieris Pharmaceuticals ripped sharply higher on Tuesday back above its 20-day moving average of $1.79 a share with above-average volume. This high-volume spike to the upside is now quickly pushing shares of Pieris Pharmaceuticals within range of triggering a big 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 $2 to $2.02 and then above more resistance at $2.05 a share with high volume.

Traders should now look for long-biased trades in Pieris Pharmaceuticals as long as it's trending above Tuesday's intraday low of $1.57 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 234,149 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 its 50-day moving average of $2.20 to around $2.40, or even $2.60 to its 200-day moving average of $2.86 a share.

Vical

  • Tuesday's Range: $0.41-$0.46
  • 52-Week Range: $0.37-$1.55
  • Tuesdays Volume: 494,000
  • Three-Month Average Volume: 228,294

Vical  (VICL)  engages in the research and development of biopharmaceutical products based on its DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases. This stock traded up 6.4% to 45 cents per share in Tuesday's trading session.

From a technical perspective, Vical trended higher here right above its 20-day moving average of 41 cents per share with above-average volume. This stock recently formed a double bottom chat pattern after buyers emerged at 38 cents to 37 cents per share. Following that potential bottom, shares of Vical have now started to uptrend back above its 20-day moving average and the stock is quickly moving within range of triggering a big breakout trade. That trade will trigger if this stock manages to take out some near-term overhead resistance levels at 45 to 48 cents per share and then above its 50-day moving average of 49 cents to 50 cents per share with high volume.

Traders should now look for long-biased trades in Vical as long as it's trending above its 20-day moving average of 41 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 228,294 shares. If that breakout fires off soon, then this stock will set up to retest or possibly take out its next major overhead resistance levels at 60 cents to 68 cents per share.

Violin Memory

  • Tuesday's Range: $1.59-$1.82
  • 52-Week Range: $1.29-$5.55
  • Tuesday's Volume: 1.34 million
  • Three-Month Average Volume: 1.18 million

Violin Memory  (VMEM)  develops and supplies memory-based storage systems to bring storage performance in line with high-speed applications, servers and networks worldwide. This stock traded up 5.3% to $1.76 in Tuesday's trading session.

From a technical perspective, Violin Memory ripped sharply higher on Tuesday right off both its 20-day moving average of $1.65 and its 50-day moving average of $1.66 a share with above-average volume. This strong spike to the upside also pushed shares of Violin Memory into breakout territory, since the stock flirted with or cleared some key near-term overhead resistance levels at $1.72 to $1.77 a share. That move is now quickly pushing this stock within range of triggering a much bigger breakout trade. That breakout will trigger if this stock manages to take out Tuesday's intraday high of $1.82 and then once it clears more key overhead resistance levels at $1.92 to $2 a share with high volume.

Traders should now look for long-biased trades in Violin Memory as long as it's trending above some near-term support around $1.60 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.18 million shares. If that breakout gets set off soon, then this stock will set up to re-fill some of its previous gap-down-day zone from August that started near $2.50 a share.

Aeropostale

  • Tuesday's Range: $0.61-$0.79
  • 52-Week Range: $0.47-$4.39
  • Tuesday's Volume: 2.32 million
  • Three-Month Average Volume: 1.59 million

Aeropostale  (ARO)  operates as a specialty retailer of casual apparel and accessories for teens. This stock traded up 16.6% to 78 cents per share in Tuesday's trading session.

From a technical perspective, Aeropostale exploded higher on Tuesday right above its 20-day moving average of 62 cents per share and back above its 50-day moving average of 74 cents per share with strong upside volume flows. This high-volume move to the upside is now quickly pushing shares of Aeropostale within range of triggering a big 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 80 cents to 83 cents per share with high volume.

Traders should now look for long-biased trades in Aeropostale as long as it's trending above some near-term support at 69 cents or above its 20-day moving average of 62 cents per share and then once it sustains a move or close above those breakout levels with volume that registers near or above 1.59 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 levels at $1 to $1.15, or even $1.35 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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