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 American Apparel (APP), which soared higher by 21%; Everyware Global (EVRY), which ripped to the upside by 17%; Telik (TELK), which jumped higher by 9.7%; and Samson Oil & Gas (SSN), which trended up 9.4%. 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 biotechnology stock that recently ripped to the upside was Prana Biotechnology (PRAN), which I highlighted in June 26's "5 Stocks Under $10 Setting Up to Soar" at around $2.15 a share. I mentioned in that piece that shares of Prana Biotechnology recently formed a double bottom chart pattern at $1.90 to $2 a share right above its 50-day moving average. This stock was just starting to spike higher right above those support levels and it was beginning to move within range of triggering a major breakout trade above some key overhead resistance levels at $2.22 to $2.35 a share.
Guess what happened? Shares of Prana Biotechnology started to trigger that breakout a few trading sessions later with decent upside volume flows. Shares of PRAN have continued to trend higher since that article with the stock tagging an intraday high on Wednesday of $2.75 a share. That represents a fat gain of close to 30% in a very short timeframe for anyone who bought PRAN in anticipation of that breakout. I don't think PRAN is anywhere near done going higher, so traders should now watch for $2.75 to its gap-down-day high from April at $3.24 to get taken out with volume for the next major leg higher to begin.
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.