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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.
Just take a look at some of the hot movers in the under-$10 complex from Wednesday, including
YM BioSciences(YMI), which skyrocketed by 76%;
DayStar Technologies(DSTI), which exploded by 41%;
Renesola(SOL), which soared by 31%; and
AspenBio Pharma(APPY), which surged by 30%. 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 to the upside was
Audience(ANDC), which I highlighted in Oct. 11's "
5 Stocks Under $10 Set to Soar" at around $5.83 a share. I mentioned in that piece that shares of ADNC had gapped down in September from over $18 to a low of $5.80 a share with huge downside volume. Following that move, shares of ADNC entered extremely oversold territory, since its relative strength index (RSI) reading was registering below 20. I highlighted how the stock was also starting to rebound and move within range of triggering a near-term breakout trade above $5.84 to $6 a share and then above $7.20 to $7.36 a share.
Guess what happened? Shares of ADNC went on to trigger that breakout just a few weeks later with decent upside volume flows. The stock has continued to trend higher and has now moved into its previous gap down zone from back in September. Shares of ADNC have soared since my piece with the stock hitting a recent high of $10.02 a share. That's a massive gain in a just a few months for anybody who took that trade. Shares of ADNC still look poised for much higher prices if the stock can now trigger another breakout trade above $10.02 with high volume. Lots of that previous gap could still get filled, so keep this name on your trading radar.
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.
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.