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WINDERMERE, Fla. ( Stockpickr) -- There isn't a day that goes by on Wall Street where 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
Vringo(VRNG), which skyrocketed higher by over 30%;
Biolase(BIOL), which spiked higher by over 30%; and
Hydrogenics(HYGS), which ripped to the upside by 10%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.
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One low-priced stock that has demonstrated a lot of strength lately is
Zogenix (ZGNX), which I highlighted in Sept. 14's "
5 Stocks Poised for Breakouts" at around $2.40 a share. I mentioned that ZGNX had been uptrending very strong, and the stock was quickly moving within range of triggering a
major breakout trade. That trade would hit once ZGNX managed to clear some near-term overhead resistance at $2.54 to $2.60 a share with high volume.
Guess what happened? Shares of ZGNX went on to trigger that breakout with massive upside volume just a few days later. This stock is now printing new
52-week highs as I write this with shares trading at $3.23. That move has pushed ZGNX above some more resistance at $2.90 to $3.04 a share. If this stock can continue to trend above $2.90 to $3.04 a share with strong upside volume, then it has a great chance of tagging $4 to $5 a share in the very near future.
Low-priced stocks are something that I
tweet about on a regular basis. I frequently flag high-probability setups, breakout candidates and low-priced stocks that are acting technically bullish. I like to hunt for low-priced stocks that are showing bullish price and volume trends, since that increases the probability of those stocks heading higher.
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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.
With that in mind, here's a look at
several under-$10 stocks that look poised to potentially trade higher from current levels.