These 7 Stocks Under $10 Are Breaking Out

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.

Stocks that are in favor and making large moves is a segment of the market that I tweet about on a regular basis.These are also the exact type of stocks that I love to trade and alert to my subscribers in real-time.

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.

Bonanza Creek Energy

  • Tuesday's Range: $2.18-$2.63
  • 52-Week Range: $0.88-$27.95
  • Tuesday's Volume: 4.37 million
  • Three-Month Average Volume: 3.75 million

Bonanza Creek Energy  (BCEI) , an independent energy company, engages in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas in the U.S. This stock closed up 15% to $2.44 in Tuesday's trading session.

From a technical perspective, Bonanza Creek Energy spiked sharply higher on Tuesday right above its 50-day moving average of $1.87 a share with strong upside volume flows. This high-volume rip to the upside is now quickly pushing shares of Bonanza Creek Energy 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 $2.65 to $3 a share with high volume.

Traders should now look for long-biased trades in Bonanza Creek Energy long as it's trending above Tuesday's intraday low of $2.18 a share or above its 50-day moving average of $1.87 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.75 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 $3.38 to $3.39, or even $4 to $4.50 a share.

 


Synergy Pharmaceuticals

  • Tuesday's Range: $3.48-$3.77
  • 52-Week Range: $2.50-$10.15
  • Tuesday's Volume: 15.21 million
  • Three-Month Average Volume: 2.70 million

Synergy Pharmaceuticals  (SGYP) , a biopharmaceutical company, focuses on the development of drugs to treat gastrointestinal disorders and diseases. This stock traded up 9.3% to $3.64 in Tuesday's trading session.

From a technical perspective, Synergy Pharmaceuticals ripped sharply higher on Tuesday with monster upside volume. This stock has been uptrending over the last month or so, with shares moving higher off its new 52-week low of $2.50 a share to its intraday high on Tuesday of $3.77 a share. During that uptrend, shares of Synergy Pharmaceuticals have been making mostly higher lows and higher highs, which is bullish technical price action. This high-volume rip higher on Tuesday is now quickly pushing this stock within range of triggering a near-term breakout trade. That trade will trigger if this stock manages to take out Tuesday's intraday high of $3.77 a share and then above more key resistance levels at $3.85 to $3.88 a share with high volume.

Traders should now look for long-biased trades in Synergy Pharmaceuticals s as long as it's trending above Tuesday's intraday low of $3.48 a share or above its 50-day moving average of $3.26 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.70 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 $4.08 to $4.50, or even $5 to $5.50 a share.

EP Energy

  • Tuesday's Range: $4.36-$5.00
  • 52-Week Range: $1.60-$15.80
  • Tuesday's Volume: 2.91 million
  • Three-Month Average Volume: 3.62 million

EP Energy  (ETE) , an independent exploration and production company, acquires and develops unconventional onshore oil and natural gas properties in the U.S. This stock traded up 12.1% to $4.81 in Tuesday's trading session.

From a technical perspective, EP Energy ripped sharply higher on Tuesday back above its 20-day moving average of $4.54 a share with lighter-than-average volume. This jump to the upside is now quickly pushing shares of EP Energy 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 to $5.14 a share with high volume.

Traders should now look for long-biased trades in EP Energy as long as it's trending above Tuesday's intraday low of $4.36 a share or above its 50-day moving average of $3.96 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.62 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 200-day moving average of $5.43 to $5.74, or even $6 to $6.50 a share.

SeaDrill

  • Tuesday's Range: $3.82-$4.68
  • 52-Week Range: $1.57-$15.44
  • Tuesday's Volume: 37.53 million
  • Three-Month Average Volume: 15.61 million

SeaDrill  (SDRL) , an offshore drilling contractor, provides offshore drilling services to the oil and gas industry worldwide. This stock traded up 12.9% to $4.20 in Tuesday's trading session.

From a technical perspective, SeaDrill spiked sharply higher on Tuesday and briefly broke out above some near-term overhead resistance at $4.25 a share with monster upside volume flows. Market players should now look for a continuation move to the upside in the short-term if SeaDrill manages to take out Tuesday's intraday high of $4.68 a share with strong upside volume flows.

Traders should now look for long-biased trades in SeaDrill as long as it's trending above Tuesday's intraday low of $3.81 a share and then once it sustains a move or close above Tuesday's intraday high of $4.68 a share with volume that hits near or above 15.61 million shares. If that move gets underway soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $5 to its 200-day moving average of $5.38 ,or even $6 a share.

Abraxas Petroleum

  • Tuesday's Range: $1.02-$1.10
  • 52-Week Range: $0.65-$3.85
  • Tuesday's Volume: 1.06 million
  • Three-Month Average Volume: 823,332

Abraxas Petroleum  (AXAS) , an independent energy company, engages in the acquisition, exploitation, development and production of oil and gas properties in the U.S. This stock traded up 2.8% to $1.07 in Tuesday's trading session.

From a technical perspective, Abraxas Petroleum jumped notably higher on Tuesday right above its 50-day moving average of 99 cents per share with above-average volume. This high-volume spike to the upside is now quickly pushing shares of Abraxas Petroleum within range of triggering a major 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 $1.10 to $1.15 a share with high volume.

Traders should now look for long-biased trades in Abraxas Petroleum as long as it's trending above its 50-day moving average of 99 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 823,332 shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out is next major overhead resistance levels at $1.25 to $1.31, or even its 200-day moving average of $1.37 to $1.50 a share.

Unwired Planet

Unwired Planet  (UPIP) , an intellectual property licensing company, develops patents that allow mobile devices to connect to the Internet and enable mobile communications worldwide. This stock traded up 2.4% to $7.16 in Tuesday's trading session.

  • Tuesday's Range: $6.92-$7.22
  • 52-Week Range: $6.48-$13.20
  • Tuesday's Volume: 406,000
  • Three-Month Average Volume: 46,513

From a technical perspective, Unwired Planet spiked notably higher on Tuesday right above its recent low of $6.77 a share with strong upside volume flows. This stock recently gapped-down sharply lower from over $10 a share to below $7 a share with heavy downside volume flows. Following that move, shares of Unwired Planet have now started to trend sideways with the stock moving between $6.77 on the downside and $7.22 on the upside. Any high-volume move above the upper-end of its recent sideways trending chart pattern could trigger a big breakout trade for shares of Unwired Planet. That trade will trigger if this stock manages to take out Tuesday's intraday high of $7.22 a share with high volume.

Traders should now look for long-biased trades in Unwired Planet as long as it's trending above Tuesday's intraday low of $6.92 a share or above its recent low of $6.77 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 46,513 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 $8 to its 20-day moving average of $8.55, or even its 50-day moving average of $8.75 a share.

BioDelivery Sciences

BioDelivery Sciences  (BDSI) , a specialty pharmaceutical company, engages in the development and commercialization of pharmaceutical products principally in the areas of pain management and addiction. This stock traded up 1.9% to $3.62 in Tuesday's trading session.

  • Tuesday's Range: $3.50-$3.69
  • 52-Week Range: $2.53-$9.91
  • Tuesday's Volume: 1.49 million
  • Three-Month Average Volume: 1.20 million

From a technical perspective, BioDelivery Sciences trended modestly higher on Tuesday right above its 20-day moving average of $3.40 a share and back above its 50-day moving average of $3.54 a share with above-average volume. This trend to the upside is now starting to push shares of BioDelivery Sciences within range of triggering a big 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 $3.75 to $4 a share with high volume.

Traders should now look for long-biased trades in BioDelivery Sciences as long as it's trending above its 20-day moving average of $3.40 a share and then once it sustains a move or close above those breakout levels with volume that registers near or above 1.20 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 $4.40 to $4.70 or even $4.90 to $5.30 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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