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

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 Noranda Aluminum (NOR), which skyrocketed higher by 34.8%; FX Energy (FXEN), which ripped higher by 27%; Real Goods Solar (RSOL), which surged by 16.7%; and Cimatron (CIMT), which spiked to the upside by 16.4%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

>>5 Big Names to Trade This Earnings Season

One low-priced stock that recently exploded to the upside was biotechnology and drugs player Sucampo Pharmaceuticals (SCMP), which I highlighted in March 14's "5 Stocks Under $10 Triggering Breakouts" at around $5 a share. I mentioned in that piece that shares of SCMP hit recently hit $4.55 a share which was very close to some previous support levels at $4.51 to $4.54 a share. That marked a major bottom for SCMP and the stock was now starting to challenge both its 50-day at $5.14 a share and its 200-day at $5.20 a share. That move was quickly pushing shares of SCMP within range of triggering a near-term breakout trade above some overhead resistance levels at $5.42 to $5.53 a share.

Guess what happened? Shares of SCMP went on to trigger that breakout trade with decent volume just a few trading sessions later, and the stock hasn't looked back since. This biotech player quickly hit $7 a share by mid-April and then the monster move came this week. Shares of SCMP broke out again above $7 a share on Tuesday with massive upside volume. The stock hit a new 52-week high on Wednesday at $10.18 a share and volume again was off the charts. That represents a 100% gain for anyone who played the breakout in just about a month! This stock is the perfect example of how playing breakouts can lead to massive profits in a very short timeframe.

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.

>>5 Toxic Stocks You Need to Sell

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.

>>5 Stocks Insiders Love Right Now

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