DELAFIELD, Wis. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for under $10 a share 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 Friday, including Emerson Radio (MSN) , which is exploding higher by 28%; MGT Capital Investments (MGT) , which is surging higher by 20%; Digital Ally (DGLY) , which is ripping higher by 19%; and Heat Biologics (HTBX) , which is jumping to the upside by 16.7%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.
One example of an under-$10 stock I flagged recently that exploded to the upside was China Finance Online (JRJC) , which I featured in July 24's "5 Stocks Under $10 Set to Soar" at around $4.27 per share. I mentioned in that piece that shares of China Finance Online were just starting to flirt with a breakout trade, since the stock was starting to challenge some near-term overhead resistance at $4.28 a share. That action was starting to push shares of JRJC within range of triggering a much bigger breakout trade above some key near-term overhead resistance levels
Guess what happened? Shares of China Finance Online finally triggered that breakout early this week with monster upside volume flows. Volume on Monday registered 11.87 million shares and on Tuesday it hit 32.76 million shares, which is well above its three-month average volume of 1.84 million shares. Shares of JRJC have exploded to the upside since clearing some key near-term overhead resistance levels at $ 4.75 to $5.10 a share with the stock tagging an intraday high on Thursday at $11.88 a share. That represents a monster gain of well over 100% for anyone who bought the stock in anticipation of that breakout following my original article.
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.