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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Under-$10 Stocks Setting Up to Trade Higher

WINDERMERE, Fla. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for $10 a share or less 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.

>>5 Toxic Stocks to Dump Before 2013

Just take a look at some of the hot movers in the under-$10 complex from Wednesday, including Pacific Booker Minerals (PBM), which skyrocketed by 41%; THQ (THQI), which soared by 37%; Acura Pharmaceuticals (ACUR), which ripped higher by 37%; and Inteliquent (IQNT), which spiked higher by 28.84%. 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 recently exploded higher was BioMimetic Therapeutics (BMTI), which I highlighted in Nov. 13's "4 Big Volume Gainers Under $10" at around $4.05 a share. I mentioned that BMTI was trending higher right above some near-term support at $3.80 a share. That move was quickly pushing BMTI within range of triggering a breakout trade above some near-term overhead resistance levels at $4.13 to $4.19 a share.

Guess what happened? Shares of BMTI started to challenge those breakout levels within a few days after it hit a high of $4.24 a share. The stock briefly dipped down to $4.04 a share before closing at $4.15 a share on Nov.16. The following trading session on Nov. 19, shares of BMTI exploded to the upside and hit an intraday high of $7.41 a share with monster upside volume. I mentioned in the article that traders should look for long-biased trades in BMTI as long as it was trending above $3.86 a share. When trading breakouts, many times you have to anticipate the move. Had you done that with BMTI, you would have banked a huge gain in just a few days.

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. These setups often produce monster moves higher in very short time frames.

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