DELAFIELD, Wis. (Stockpickr) -- Not a day goes by on Wall Street without certain stocks that trade for $10 a share or less experiencing 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 QLT (QLTI), which is ripping higher by 16%; OHR Pharma(OHRP), which is jumping higher by 14%; UniPixel (UNXL), which is soaring higher by 13%; and ParkerVision (PRKR), which is trending higher by 10%. 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 biotech stock that recently exploded to the upside was Northwest Biotherapeutics (NWBO), which I highlighted in June 12's "5 Stocks Under $10 Set to Soar Higher" at around $6.70 a share. I mentioned in that piece that shares of Northwest Biotherapeutics had been uptrending over the last month, with the stock moving higher from its low of $4.87 to its recent high at that time of $6.80 a share. That uptrend started right off NWBO's 200-day moving and the stock was just starting to spike higher off its 50-day moving average. That spike was quickly pushing shares of NWBO within range of triggering a near-term breakout trade above some key overhead resistance levels at $6.72 to $6.80 a share.
Guess what happened? Shares of Northwest Biotherapeutics started to trigger that breakout the same day as my piece with heavy upside volume. Volume on that day registered 2.14 million shares, which is well above its three-month average action of 1.09 million shares. Shares of NWBO continued to explode higher for the following three trading sessions in a row, with the stock tagging an intraday high of $9.35 a share on June 17. That represents a monster gain of close to 40% in just a few days for anyone who bought into that breakout. As you can see, trading small-cap stocks with the right technical setup can produce massive profits very quickly once momentum buyers take over.
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.