DELAFIELD, Wis. (Stockpickr) -- No matter what the market is doing on a day-to-day basis, there's always some pocket of strength developing in individual stocks. Once you know what setups to look for from a technical standpoint, then you can develop a list of stocks that have the potential to get explosive and skyrocket higher. Again, it doesn't matter what the market is doing, these setups show up on a daily basis.
One of my recent ideas that soared to the upside very quickly was health care player TearLabs (TEAR), which I featured in Feb. 12's "5 Stocks Under $10 Set to Soar" at $6.50 share. That chart was showing an extremely oversold condition and shares of TEAR were starting to reverse its recent downtrend and move within range of triggering a near-term breakout trade. That breakout triggered, and shares of TEAR exploded to the upside and hit an intraday high on Tuesday of 8.14 a share. That's a fat gain in a very short timeframe for anyone who bought the breakout and played that high-probability setup.
Shares of TEAR still have the potential to go much higher from current levels. Traders should now watch for this stock to take out its 50-day moving average of $8.29 a share soon with high volume. That's what will be needed to spark the next leg higher for TEAR.
Some of my favorite places to look for these explosive setups are in sectors such as biotech, pharmaceuticals, advanced technology and any stock that trades under-$10 that has a technically bullish chart. These are the places that I find the next stock that's setting up to skyrocket higher and make me some quick cash.
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With that in mind, here's a look at five stocks that could be setting up to make explosive moves to the upside soon.