DELAFIELD, 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 Thursday, including GenVec (GNVC), which is skyrocketing higher by 39%; OCZ Technology (OCZ), which is soaring higher by 23%; Baxano Surgical (BAXS), which is ripping higher by over 26%; and CytRx (CYTR), which is spiking higher by 22%. 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 spiked big after I featured it was development-stage healthcare player Atossa Genetics (ATOS), which I highlighted in Dec. 9's "5 Stocks Poised for Breakouts" at $2.60 per share. I mentioned in that piece that shares of Atossa Genetics were uptrending strong over the last month, with shares moving higher from its low of $1.74 to its recent high of $2.73 a share. That move had pushed shares of ATOS within range of triggering a major breakout trade if the stock could manage to clear its 50-day at $2.55 a share and some more near-term overhead resistance at $2.73 a share with high volume.>>Buy the Dips: This Bull Market's Not Over Guess what happened? Shares of Atossa Genetics didn't wait long to trigger that breakout, since the stock took out those key overhead resistance levels with strong volume on the same day as my article published. Shares of ATOS hit an intraday high the following trading session at $3.10 a share, which represents a gain of close to 20% for anyone who bought the stock near $2.60 in anticipation of the breakout. That's a solid gain a very short timeframe for anyone who played this setup. This stock is still worth watching if it can hold its 50-day on any pullback which sits at $2.33 a share, and then take out resistance at $3.10 with volume. A big gap down zone from October could come into play if ATOS can ever clear $3.18 a share. 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 Stocks Insiders Love Right Now 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. >>5 Stocks Set to Soar on Bullish Earnings With that in mind, here's a look at several under-$10 stocks that look poised to trade higher from current levels.
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