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 Rexahn Pharmaceuticals (RNN), which is exploding higher by 19%; Synthetic Biologics (SYN), which is jumping higher by 17%; Skilled Healthcare Group (SKH), which is trending to the upside by 12%; and Ambient (AMBT), which is ripping higher by 12%. 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 ripped higher was integrated mining player Pretium Resources (PVG), which I highlighted in April 24's "5 Stocks Under $10 Set to Soar" at around $6 per share. I mentioned in that piece that shares of PVG were trending sideways and consolidating for the last three months or so, with the stock moving between $5 on the downside and $7.49 on the upside. This stock was just starting to spike higher above support at $5.50 and it's was quickly moving within range of triggering a near-term breakout trade above its 200-day at $6.21 and its 50-day at $6.32 a share.>>5 Stocks Insiders Love Right Now Guess what happened? Shares of Pretium Resources triggered that breakout a few trading sessions later. This stock ran sharply once those key moving averages were taken out with decent volume, and shares of PVG tagged a recent a high of $7.70 a share. That represents a very nice gain in a tough market environment of right around 30%. 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. >>Hedge Funds Hate These 5 Stocks -- Should You? 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.