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 BioFuel Energy (BIOF), which is ripping higher by 33%; LiveDeal (LIVE), which is soaring higher by 27%; SGOCO Group (SGOC), which is jumping to the upside by 17%; and GenVec (GNVC), which is moving higher by 7%. 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 made a huge run after I featured it was technology solutions player Rambus (RMBS), which I highlighted in Feb. 20's 5 Stocks Under $10 Ready to Explode at $1.27 per share. I mentioned in that piece that shares of Rambus of were starting to spike higher off its 50-day moving average at that time of $9.12 a share. That spike was beginning to push shares of RMBS within range of triggering a near-term breakout trade above some key overhead resistance levels at $9.73 to $9.81 a share.
Guess what happened? Shares of RMBS didnt wait long to trigger that breakout, since the stock busted out above those levels a few weeks later. This stock has gone on to make an incredible move higher even during the recent market decline, with shares of RMBS tagging an intraday high today of $12.50 a share. That represents a massive gain of well over 30% from the time I featured this stock. The best part about this move is the clean uptrend you'll see on the chart for RMBS as the stock marched higher over the last few months.
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.
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.