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5 Stocks Under $10 Set to Soar

MADISON, Wis. ( 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 OCZ Technology (OCZ), which skyrocketed higher by 26%; Park City Group (PCYG), which soared by 21.8%; Recovery Energy (RECV), which surged by 18.6%; and Ecotality (ECTY), which ripped to the upside by 14.6%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

>>This Rally Is in Make-or-Break Mode: 5 Must-See Charts

One low-priced stock that recently skyrocketed higher was biotechnology and drugs player Acura Pharmaceuticals (ACUR), which I highlighted in April 5's " 5 Stocks Poised for Breakouts" at around $2.20 a share. I mentioned in that piece that shares of ACUR had recently formed a double bottom chart pattern at $1.95 to $2 a share. The stock was just starting to trend back above a key downtrend line that had been acting as resistance for over the last month. That move was quickly pushing shares of ACUR within range of triggering a major breakout trade that could send shares soaring higher.

Guess what happened? Shares of ACUR triggered that breakout on April 17 with heavy upside volume. The stock exploded to the upside and tagged an intraday high of $3.78 a share, which represented a monster gain of over 60%. If you had bought the stock on weakness or strength to anticipate that breakout, then you banked some serious coin on a day when the overall market was getting hammered. The best part about this move is that ACUR never violated its double bottom area at $2 to $1.95 a share, prior to the explosive breakout.

>>5 Stocks With Big Insider Buying

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.

>>5 Hated Earnings Stocks That Deserve Your Love

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.

>>4 Turnaround Stocks With Major Upside
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