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5 Stocks Under $10 Set to Soar

Stocks in this article: RGENXIDEMHRALXADCTHSVNT

WINDERMERE, Fla. ( Stockpickr) -- There isn't a day that goes by on Wall Street that certain stocks trading near or under $10 a share don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sound risk management are banking ridiculous coin on a regular basis.

Just take a look at some of the hot movers in the under-$10 complex from Wednesday, including Renewable Energy Group (REGI), which ripped higher by 27%; Lee Enterprises (LEE), which soared by 19.5%; LoJack (LOJN), which trended up 19.4%; and Alliance Healthcare Services (AIQ), which closed up 18.2%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

One low-priced stock that I flagged recently that went on to explode higher was Savient Pharmaceuticals (SVNT). On last Friday, I highlighted SVNT in " 5 Stocks Poised for Breakouts" at around 77 cents. I liked the way SVNT was setting up to take out some overhead resistance levels, and I liked the way the upside volume was expanding dramatically.

>>5 Huge Stocks Ready to Slingshot Higher

Guess what happened? Shares of SVNT did trigger that breakout with heavy volume, and the stock went on to run from 75 cents to its recent high of $1.10 a share. Shares of SVNT still look bullish, and traders should now look for more upside if it can manage to clear $1.10 with high volume. A move over $1.10 could send SVNT toward its 200-day moving average of $1.73 a share.

I'm not as eager to recommend investing long term in stocks that trade less than $10 a share because these names can be very speculative, and the odds for picking the long-term winners aren't great. But I definitely love to trade stocks that are priced below $10. I like to view them as a trading vehicle with lots of volatility and lots of upside when the trade is timed right.

When I trade under-$10 names, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 names with a catalyst, but that's secondary to the chart and volume patterns.

>>5 Stocks With Big Insider Buying

With that in mind, here's a look at several under-$10 stocks that look poised to potentially trade higher from current levels.

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