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 IsoRay (ISR), which is exploding higher by over 28%; Bacterin International (BONE), which is soaring higher by 26%; BG Medicine (BGMD), which is ripping to the upside by 25%; and MagneGas (MNGA), which is jumping to the upside 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 exploded higher was China-based energy player Andatee China Marine Fuel Services (AMCF), which I highlighted in Mar. 6's "5 Stocks Under $10 Set to Soar" at around $1.75 per share. I mentioned in that piece that shares of Andatee China Marine Fuel Services had been trending sideways for the last few months with the stock hugging its 50-day moving average. Shares of AMCF were just starting to spike higher off its 50-day moving average with strong upside volume and the stock was quickly pushing within range of triggering a big breakout trade.>>5 Stocks Insiders Love Right Now Guess what happened? Shares of Andatee China Marine Fuel Services triggered that breakout yesterday after the stock took out some key near-term overhead resistance levels at $2.17 to $2.20 a share with monster upside volume. This stock has continued to rip higher today with shares tagging an intraday high of $2.71 a share. That represents a monster gain of over 40% for anyone who got long AMCF and anticipated that breakout. Traders should now watch for another breakout to trigger with AMCF if it manages to take out today's high of $2.71 to its 52-week high at $2.75 a share with strong volume. 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 Rocket Stocks Worth Buying This Week 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.
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