3 Stocks Under $10 in Breakout Territory

 At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

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.

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

upside.

ShoreTel (SHOR), together with its subsidiaries, provides Internet protocol unified communications systems for enterprises in the U.S. and internationally. This stock closed up 2.3% to $6.67 in Tuesday's trading session.

Tuesday's Range: $6.46-$6.74 
52-Week Range: $3.77-$9.81 
Thursday's Volume: 555,000 
Three-Month Average Volume: 506,002

From a technical perspective, SHOR jumped higher here right above some near-term support at $6.30 with above-average volume. This stock recently formed a triple bottom chart pattern at $6.25, $6.35 and $6.30. Following that bottom, shares of SHOR have started to rip higher and move within range of triggering a major breakout trade. That trade will hit if SHOR manages to take out some key near-term overhead resistance levels at $6.79 to its 50-day moving average of $6.93 with high volume.

Traders should now look for long-biased trades in SHOR as long as it's trending above some key near-term support levels at $6.30 to $6.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 506,002 shares. If that breakout materializes soon, then SHOR will set up to re-test or possibly take out its next major overhead resistance levels at $7.21 to its 200-day moving average of $7.68. Any high-volume move above those levels will then give SHOR a chance to tag $8 to $8.50.

Ceres (CERE), an agricultural biotechnology company, develops and sells energy crops to produce renewable bioenergy feedstocks in North America. This stock closed up 3.5% to 69 cents per share in Tuesday's trading session.

Tuesday's Range: $0.66-$0.69 
52-Week Range: $0.50-$3.64 
Tuesdays Volume: 198,000 
Three-Month Average Volume: 360,856

From a technical perspective, CERE jumped higher here right above its 50-day moving average of 63 cents per share with lighter-than-average volume. This stock recently formed a double bottom chart pattern right below its 50-day at 66 to 65 cents per share. Shares of CERE are now starting to trend higher off those support levels and move within range of triggering a major breakout trade. That trade will hit if CERE manages to take out Tuesday's intraday high of 69 cents per share to more key overhead resistance levels at 71 to 75 cents per share with high volume.

Traders should now look for long-biased trades in CERE as long as it's trending above its 50-day 63 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 360,856 shares. If that breakout gets underway soon, then CERE will set up to re-test or possibly take out its next major overhead resistance levels at 91 cents per share to $1.

Ballard Systems (BLDP) is engaged in the development and commercialization of proton exchange membrane fuel cells worldwide. This stock closed up 3.4% to $4.26 in Tuesday's trading session.

Tuesday's Range: $4.04-$4.47 
52-Week Range: $1.25-$8.38 
Tuesday's Volume: 6.62 million 
Three-Month Average Volume: 4.77 million

From a technical perspective, BLDP spiked higher here right above some near-term support at $3.88 with strong upside volume flows. This spike higher on Tuesday is starting to push shares of BLDP within range of triggering a big breakout trade. That trade will hit if BLDP manages to take out Tuesday's intraday high of $4.47 to some more key near-term overhead resistance at $4.52 with high volume.

Traders should now look for long-biased trades in BLDP as long as it's trending above some near-term support at $3.88 or above its 50-day at $3.62 and then once it sustains a move or close above those breakout levels volume that hits near or above 4.77 million shares. If that breakout triggers soon, then BLDP will set up to re-test or possibly take out its next major overhead resistance levels at $5.17 to $5.40. Any high-volume move above those levels will then give BLDP a chance to tag $6.

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.

Source:http://www.thestreet.com/story/12763519/1/3-stocks-under-10-in-breakout-territory.html