5 Stocks Under $10 Set to Soar

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.

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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.

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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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