BALTIMORE ( Stockpickr) -- There's something about low-priced stocks that gets investors' motors running. That's the only explanation for the elevated trading volumes in the under-$10 stocks. And as the market sleeps off its hangover after a pretty nasty session yesterday, there are some big trades to be made in the smallest stocks.
To be clear, a low share price doesn't necessarily mean that we're talking about a small company, or a "cheap" one by valuation standards. In fact, by itself, share price isn't a very useful metric at all. But it's true that lower-priced names tend to trade more actively than pricier stocks of similar market capitalization.
And that liquid trading means that some actionable technical setups are bound to pop up. Today, we'll take a closer look at five of them.For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution. >>5 Hated Earnings Stocks You Should Buy Without further ado, let's take a look at five technical setups worth trading now.
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