Wednesday, May 28, 2014

4 Stocks Under $10 in Breakout Territory

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Stocks Set to Soar on Bullish Earnings

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down 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 technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Rocket Stocks to Buy for Short-Week Gains

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

Cytokinetics

Cytokinetics ( CYTK), a clinical-stage biopharmaceutical company, focuses on the discovery and development of novel small-molecule therapeutics that modulate muscle function for the potential treatment of serious diseases and medical conditions. This stock closed up 4.7% to $5.17 in Tuesday's trading session.

Tuesday's Range: $4.95-$5.22

52-Week Range: $3.96-$14.28

Tuesday's Volume: 1.05 million

Three-Month Average Volume: 1.45 million

From a technical perspective, CYTK surged sharply higher here with decent upside volume. This spike higher on Tuesday is quickly pushing shares of CYTK within range of triggering a big breakout trade. That trade will hit if CYTK manages to take out Tuesday's intraday high of $5.22 to its recent gap-down-day high of $5.45 with high volume.

Traders should now look for long-biased trades in CYTK as long as it's trending above its recent breakout levels of $4.73 to $4.78 and then once it sustains a move or close above $5.22 to $5.45 with volume that hits near or above 1.45 million shares. If that breakout hits soon, then CYTK will set up to re-fill some of its previous gap-down-day zone from April that started above $13.

Procera NetworksPKT/">PKT) provides intelligent policy enforcement solutions based on deep packet inspection technology that enable mobile and broadband network operators and entities to manage and control their private networks. This stock closed up 6.2% to $9.85 in Tuesday's trading session.

Tuesday's Range: $9.38-$9.96

52-Week Range: $8.33-$16.48

Tuesday's Volume: 276,000

Three-Month Average Volume: 353,109

From a technical perspective, PKT ripped sharply higher here back above its 50-day moving average of $9.75 with lighter-than-average volume. This move also pushed shares of PKT into breakout territory, since it flirted with or took out some near-term overhead resistance levels at $9.52 to $9.89. Shares of PKT tagged an intraday high of $9.96 before it closed just below that level at $9.85. Market players should now look for a continuation move higher in the short-term if PKT manages to take out Tuesday's intraday high of $9.96 with high volume.

Traders should now look for long-biased trades in PKT as long as it's trending above Tuesday's low of $9.38 and then once it sustains a move or close above $9.96 with volume that hits near or above 353,109 shares. If that move starts soon, then PKT will set up to re-test or possibly take out its next major overhead resistance levels at $10.81 to $11.50, or even $12.

Avanir Pharmaceuticals

Avanir Pharmaceuticals (AVNR), together with its subsidiaries, is engaged in acquiring, developing and commercializing novel therapeutic products for the treatment of central nervous system disorders primarily in the U.S. This stock closed up 4.1% to $5.04 a share in Tuesday's trading session.

Tuesday's Range: $4.80-$5.09

52-Week Range: $2.62-$6.00

Tuesday's Volume: 3.72 million

Three-Month Average Volume: 3.09 million

From a technical perspective, AVNR spiked notably higher here right above some near-term support at $4.57 with above-average volume. This spike higher on Tuesday is quickly pushing shares of AVNR within range of triggering a major breakout trade. That trade will hit if AVNR manages to take out Tuesday's high of $5.09 to some more near-term overhead resistance at $5.22 with high volume.

Traders should now look for long-biased trades in AVNR as long as it's trending above Tuesday's low of $4.80 or above more near-term support at $4.57 and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.09 million shares. If that breakout materializes soon, then AVNR will set up to re-test or possibly take out its 52-week high of $6.

On Track Innovations

On Track Innovations (OTIV) designs, develops and markets cashless payment solutions. This stock closed up 7.4% to $2.45 in Tuesday's trading session.

Tuesday's Range: $2.29-$2.47

52-Week Range: $0.91-$4.38

Tuesday's Volume: 464,724

Three-Month Average Volume: 195,738

From a technical perspective, OTIV ripped higher here with strong upside volume. This sharp spike higher on Tuesday is starting to push shares of OTIV within range of triggering a near-term breakout trade. That trade will hit if OTIV manages to take out some key near-term overhead resistance levels at $2.55 to $2.58 and then once it clears more resistance at $2.63 with high volume.

Traders should now look for long-biased trades in OTIV as long as it's trending above Tuesday's low of $2.29 or above more support at $2.20 and then once it sustains a move or close above those breakout levels with volume that hits near or above 464,724 shares. If that breakout triggers soon, then OTIV will set up to re-test or possibly take out its next major overhead resistance levels at $3.15 to $3.45.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>4 Big Stocks to Trade (or Not)



>>5 Stocks Poised for Breakouts



>>5 Stocks Under $10 Set to Soar

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com.

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


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