4 Stocks Under $10 to Trade for Breakouts

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

Must Read: Warren Buffett's Top 10 Dividend Stocks



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.

Must Read: 10 Stocks Billionaire John Paulson Loves in 2014

Cara Therapeutics

Cara Therapeutics (CARA), a clinical-stage biopharmaceutical company, focuses on developing and commercializing chemical entities designed to alleviate pain by selectively targeting kappa opioid receptors. This stock closed up 7.1% to $8.65 in Tuesday's trading session.

Tuesday's Range: $8.09-$8.76

52-Week Range: $7.53-$23.25

Tuesday's Volume: 44,000

Three-Month Average Volume: 86,729

From a technical perspective, CARA ripped higher here right off of $8 a share with lighter-than-average volume. This move briefly pushed shares of CARA into breakout territory, since the stock flirted with some near-term overhead resistance levels at $8.60 to $8.71. Shares of CARA tagged an intraday high of $8.76, before it close just below that level at $8.65. This sharp spike higher on Tuesday is now quickly pushing shares of CARA within range of triggering another big breakout trade. That trade will hit if CARA manages to take out some key near-term overhead resistance levels at $9 to its 50-day moving average of $9.05 with high volume.

Traders should now look for long-biased trades in CARA as long as it's trending above $8 or above $7.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 86,729 shares. If that breakout gets underway soon, then CARA will set up to re-test or possibly take out its next major overhead resistance levels at $10 to $10.50, or even $11.

Must Read: How to Trade the Market's Most-Active Stocks

Quest Resource Holding

Quest Resource Holding (QRHC), through its subsidiaries, provides management programs to reuse, recycle and dispose various waste streams and recyclables in the U.S. This stock closed up 2% to $1.50 in Tuesday's trading session.

Tuesday's Range: $1.46-$1.53

52-Week Range: $1.33-$6.23

Tuesday's Volume: 245,000

Three-Month Average Volume: 157,749

From a technical perspective, QRHC trended modestly higher here right above some near-term support at $1.41 with above-average volume. This stock has started to form a bottoming chart pattern, since over the last month and change this stock has found buying interest at $1.44, $1.33 and $1.41. Shares of QRHC are now starting to push within range of triggering a big breakout trade. That trade will hit if QRHC manages to take out some near-term overhead resistance levels at $1.52 to $1.60 with high volume.

Traders should now look for long-biased trades in QRHC as long as it's trending above some near-term support levels at $1.41 or above its 52-week low of $1.33 and then once it sustains a move or close above those breakout levels with volume that hits near or above 157,749 shares. If that breakout kicks off soon, then QRHC will set up to re-test or possibly take out its next major overhead resistance levels at $1.73 to $1.85, or even its gap-down-day high from September at just over $2 a share. Any high-volume move above $2 will then give QRHC a chance to re-fill some of its previous gap-down-day zone that started at $4.

Must Read: 5 Hated Earnings Stocks You Should Love

Titan International

Titan International (TWI), together with its subsidiaries, manufactures and sells wheels, tires, and undercarriage systems and components for off-highway vehicles used in the agricultural, earthmoving/construction and consumer markets in the U.S. and internationally. This stock closed up 4.6% to $9.86 in Tuesday's trading session.

Tuesday's Range: $9.22-$10.33

52-Week Range: $9.14-$19.89

Tuesday's Volume: 1.53 million

Three-Month Average Volume: 625,829

From a technical perspective, TWI ripped higher here right above its 52-week low of $9.14 with above-average volume. This strong move to the upside on Tuesday also briefly pushed shares of TWI into breakout territory, since the stock flirted with some near-term overhead resistance at $9.94. Shares of TWI tagged an intraday high of $10.33, before it closed off that level at $9.86. This move is now starting to push shares of TWI within range of triggering another breakout trade. That trade will hit if TWI manages to take out Tuesday's intraday high of $10.33 to some more near-term overhead resistance at $10.50 with high volume.

Traders should now look for long-biased trades in TWI as long as it's trending above its 52-week low of $9.14 and then once it sustains a move or close above those breakout levels with volume that hits near or above 625,829 shares. If that breakout hits soon, then TWI will set up to re-test or possibly take out its next major overhead resistance levels at $11 to its 50-day moving average at $12.35, or even $13 to $13.50.

Must Read: 5 Rocket Stocks to Buy for November Gains

Lionbridge Technologies

Lionbridge Technologies (LIOX) provides language, content, and testing solutions worldwide. This stock closed up 3.9% to $4.69 in Tuesday's trading session.

Tuesday's Range: $4.47-$4.70

52-Week Range: $3.85-$7.50

Tuesday's Volume: 307,000

Three-Month Average Volume: 475,372

From a technical perspective, LIOX jumped notably higher here right off its 50-day moving average of $4.47 with lighter-than-average volume. This spike higher on Tuesday is now quickly pushing shares of LIOX within range of triggering a big breakout trade. That trade will hit if LIOX manages to take out some key near-term overhead resistance levels at $4.70 to just over $4.80 with high volume.

Traders should now look for long-biased trades in LIOX as long as it's trending above its 50-day at $4.47 or above more near-term support at $4.20 and then once it sustains a move or close above that breakout level with volume that hits near or above 475,372 shares. If that breakout triggers soon, then LIOX will set up to re-test or possibly take out its next major overhead resistance levels at $5.20 to around $5.60, or even $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.

Must Read: 7 Stocks Warren Buffett Is Selling in 2014

Follow Stockpickr on Twitter and become a fan on Facebook.

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.

3 Reasons Coca-Cola Can Turn It Around

Americans are drinking less soda, and that has been bad news for Coca-Cola  (NYSE: KO  ) . 

Total sales volume for carbonated beverages in the United States fell 3% to 8.9 billion cases in 2013, according to Beverage Digest, the ninth straight year of decline and the lowest since 1995. Coke hasn't been immune to the decline, losing sales in what it defines as "sparkling" beverages, which dropped 1% in the third quarter after being even in the previous quarter, and down 1% in the first quarter. 

There has been a specific weakness in Diet Coke sales, probably because other beverages with higher perceived health benefits are taking away market share.

Things are hardly dire for Coca Cola, but revenue had declined 2% as of the end of the third quarter, and CEO Muhtar Kent has laid out an aggressive plan to reverse the company's trajectory. 

"We are taking decisive action to position The Coca-Cola Company to continue delivering long-term value for our shareowners," Kent said in an Oct. 21 press release. "We have taken a hard look at our progress to date and realize that while the strategies we laid out at the beginning of the year are on the right track, the scope and pace of our actions must increase."

Kent's strategy is part of the reason the company should be able to reverse its slide. Here's a look at what's planned.

Coca-Cola has seen lower U.S. sales of its signature beverage.

Bottling plants will be sold
The bottling business is a high-volume, low-margin affair, and Kent plans to get out of it by "selling the majority of the company-owned North American bottling plants by the end of 2017 and a substantial portion of the remaining territories no later than 2020." The company had previously purchased its formerly franchised bottling companies in an effort to cut costs in 2010, but that plan failed. Returning that part of the business to franchisees should help the bottom line. As Euromonitor International beverage analyst Howard Telford wrote back in May:

The benefits to the Coca-Cola Company are primarily financial: The brand owner largely retains control over beverage production, sacrificing some margin but satisfying investors by reducing its direct exposure to the volatility of distribution costs. This strategy has been the historic strength of the tiered U.S. bottling system: sharing responsibility (and risk) across the supply chain.  Coke loses a little margin, but it reduces risk, and hopes to save some money on the delivery side. It's a cautious strategy -- and it's odd to reverse course so quickly -- but bottling isn't the company's core business, so it may benefit from leaving the business to its highly experienced franchisees.

Coke plans to cut $3 billion in expenses by 2019
While the CEO sees the need to cut expenses, he doesn't plan to do so by trimming the marketing or R&D budgets, which the company views as "required to deliver sustainable net revenue growth." Instead, Kent plans to reach yearly savings of $3 billion by 2019 by focusing on four areas:

Restructuring the company's global supply chain, including manufacturing in North America. Implementing zero-based budgeting across the organization. Streamlining and simplifying the operating model. Driving increased discipline and efficiency in direct marketing investments.

Basically, Kent sees that the company has become bloated, and he wants to trim some of the fat. 

The brands are strong, even if soda sales are not
Interbrand uses a complicated set of metrics to track the world's "Best Global Brands." Coca-Cola came in third in the 2013 rankings, down from the top spot in 2012. Its closest rival, PepsiCo  (NYSE: PEP  ) , ranked No. 22 each of the past two years. Coke even has its Sprite brand on the list at No. 69, while no other cold beverage company other than Pepsi makes the list at all.

While soda may currently be out of favor, Coke is an iconic brand and every move the company makes gets attention. That's a powerful tool even when your signature product is struggling. Lending the Coca Cola name to a venture gives its instant credibility and ensures a certain amount of sampling. It's a like putting Marvel or Pixar over a movie's title. It does not guarantee success, but it grants a high level of exposure and a much better chance in the marketplace..

Coke has such a well-known brand that its decision to replace its original formula in 1985 became major news, as did the reintroduction of the "Classic" version of the beverage 79 days later. Coca-Cola is an American institution.

Is Coke still it?
All of the moves Kent is making should enhance the company's bottom line, and the value of its iconic brand name should make pivoting easier. It's also worth noting that while soda sales in the U.S. have been cause for mild alarm, overall the company is very healthy. Globally, in 2013, Coke increased sales volume overall by 1%, growing its signature beverage by nearly 100 million cases. In addition, Sprite and Fanta each grew 2%, together adding more than 80 million cases.

More importantly, perhaps, the company's still beverages -- the ones not suffering from American consumers who are deciding that soda is bad for them -- grew 5%. Within that category, ready-to-drink tea sales grew 11%, while juices and juice drinks climbed by 5%. 

Coke has its problems. It's never good when your signature products are slumping in their home market, but Kent has the company on the right path. Coke may not be quite as much "it" anymore. It may also be presumptuous to say "Always Coca-Cola," but the plans appear to be in place to ensure that "America's Real Choice" will regain its footing as a brand, if not as a beverage.

Top dividend stocks for the next decade
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Market Wrap-up for Oct. 23 – Shopping for Retailers

Major U.S. equity indexes appear to have found some stable footing after enduring a steep one-month correction that wiped out nine months worth of gains for the S&P 500. In light of the equally impressive rebound we’ve seen since the trading frenzy on October 15th, it would appear that stocks are gearing up for another leg higher as we enter the final stretch of the year.

Looking ahead, the start of November marks the “Best Six Months” period according to the Stock Trader’s Almanac; the period spanning the months of November through April has historically been the most favorable time period for domestic equities. Also consider that gas prices have dipped in recent weeks and the jobs market has been slowly, but steadily, improving, and we have two tailwinds that fundamentally resonate well for consumer spending.

The Best Brands for Dividends

Now, consider the quickly approaching holiday shopping season, the two fundamental factors mentioned above, as well as the “Best Six Months” period. Put another way, now might be an opportune time for investors who are looking to put their cash to work to consider some popular retailers. More specifically, we think it’s worthwhile to focus on the companies that have a history of bringing in shoppers as well as rewarding shareholders [see also Best Global Brands that Pay Dividends].

With that in mind, the table below features 10 well-known consumer goods and retail companies that also boast a solid dividend history:

Ticker Name Years of Dividend Increases

(VFC)	V.F. Corporation	41
(TIF)	Tiffany & Co.	4
(TJX)	TJX Companies	17
(JWN)	Nordstrom Inc.	4
(M)	Macy’s	3
(GPS)	The Gap Inc.	4
(AAPL)	Apple Inc.	1
(BBY)	Best Buy	2
(COH)	Coach, Inc.	5
(NKE)	Nike Inc.	5

While you may not have heard of V.F. Corporation (VFC), this dividend-payer not only boasts an impressive track record, but is also the force behind some very popular clothing brands, including: The North Face, Timberland, Wrangler, and licensed MLB and NFL apparel.