5 Stocks Under $10 Ready to Soar Higher

WINDERMERE, Fla. (Stockpickr) -- Every day on Wall Street, there are stocks trading for $10 a share or less that 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 iGo (IGOI), which exploded higher by 31%; Acura Pharmaceuticals (ACUR), which ripped higher by 25%; Jacksonville Bancorp (JAXB), which soared by 20%; and Biolase (BIOL), which trended up by 19.4%. 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's exploding to the upside today is biotechnology and drugs player OXiGENE (OXGN), which I highlighted in Feb. 5's "3 Stocks Under $5 Making Big Moves" at around $4.28 a share. I mentioned in that piece that shares of OXGN were ripping higher right off some near-term support at $3.96 a share with above-average volume. That action was quickly pushing shares of OXGN within range of triggering a near-term breakout trade. That trade would hit if OXGN took out its 50-day at $4.59 a share and then more overhead resistance at $4.90 a share with volume.

Guess what happened? Shares of OXGN are exploding higher right now by 26% and the stock has triggered that breakout with heavy upside volume. Volume so far today has registered 691,000 shares versus its three-month average daily volume of 21,144 shares. Anyone who bought the stock in anticipation of that breakout is being handsomely rewarded today. What's great about this move in OXGN is that volume was expanding dramatically to the upside on Tuesday and Wednesday, so this was a high probability play as long as it was trending above some key near-term support at $3.96 a share.

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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.

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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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