This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Stocks Under $10 Set to Soar

Stocks in this article: PALISRCCCRZHNERLOCLIQD

 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.

>>5 Stocks With Big Insider Buying

Just take a look at some of the big movers in the under-$10 complex from Thursday, including UniPixel (UNXL), which is exploding higher by 34%; NewLead Holdings (NEWL), which is soaring higher by 26%; Ventrus Biosciences (VTUS), which is surging higher by 20%; and International Tower Hill Mines (THM), which is moving up 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 spiked sharply higher was precious metals player North American Palladium (PAL), which I highlighted in May 16's "5 Stocks Ready to Break Out" at around 25 cents per share. I mentioned in that piece that shares of North American Palladium were downtrending badly for the last month and change, with shares falling from its high of 60 cents per share to its low of 23 cents per share. This stock had just started to stabilize at around 23 cents to 26 cents per share and it was starting to move within range of triggering a big breakout trade above some near-term overhead resistance levels at 26 cents to 27 cents per share.

>>5 Big Stock Trades to Buy in June

Guess what happened? Shares of North American Palladium triggered that breakout on May 20 with very strong upside volume flows. Volume on that day registered 16.89 million shares, which is well above its three-month average volume of 5.93 million shares. This stock tagged an intraday high that day of 29 cents per share. Shares of PAL briefly pulled for the following week, and then this stock spiked huge again on May 30 to hit an intraday high of 31 cents per share. That represents a gain of close to 20% if you caught that first or second pop and you bought PAL near 25 cents per share to anticipate the breakout.

Traders should continue to watch shares of PAL here, since this stock is still uptrending off its May low of 23 cents per share and it's still trending within range of triggering a major breakout trade. Traders should look for another sharp move higher in PAL if it can manage to take out some key overhead resistance levels at its 50-day moving average of 31 cents per share to around 32 cents per share with high 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.

>>3 Stocks Rising on Big Volume

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.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,713.64 +252.32 1.53%
S&P 500 1,953.13 +26.02 1.35%
NASDAQ 4,455.15 +72.3030 1.65%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs