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 big movers in the under-$10 complex from Thursday, including Timberline Resources (TLR), which is exploding higher by over 35%; U.S. Geothermal (HTM), which is surging higher by 25%; Venaxis (APPY), which is ripping to the upside by 20%; and Tianli Agritech (OINK), which is soaring to the upside by 20%. 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 exploded higher was vehicle emissions control systems player Clean Diesel Technologies (CDTI), which I highlighted in Feb. 26's "5 Stocks Ready to Explode Higher" at around $2.55 per share. I mentioned in that piece that shares of Clean Diesel Technologies had recently started to rebound off its low of $2.08 a share after it pulled back from its high of $3.48 a share. That rebound was starting to push shares of CDTI within range of triggering a major breakout trade above some near-term overhead resistance levels at $2.76 to $2.90 a share.>>Invest Like a Hedge Fund With the Pros' Top 5 Stocks Guess what happened? Shares of Clean Diesel Technologies broke out above those resistance levels a few trading sessions later and the stock tagged an intraday high of $3.55 a share. Shares of CDTI pulled back again to $2.81 a share and that pullback never violated its 50-day moving average or made a lower low. Shares of CDTI exploded higher on Tuesday with monster upside volume and the stock tagged an intraday high of $7.39 a share. That represents a massive gain of close to 200% in a very short timeframe for shares of CDTI. 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. >>3 Huge Stocks on Traders' Radars 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.