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 Thursday, including SGOCO Group (SGOC) , which is exploding higher by 67%; RadioShack (RSH) , which is ripping higher by 31%; On Track Innovations (OTIV) , which is jumping higher by 12.5%; and RXi Pharmaceuticals (RXII) , which is surging higher by 11.8%. 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 TravelCenters of America (TA) , which I featured in Aug. 8's "5 Breakout Stocks Under $10 Set to Soar" at around $9 per share. I mentioned in that piece that shares of TravelCenters of America had been uptrending strong for the last three months, with shares moving higher from its low of $7.03 to its recent high of $9.38 a share. That uptrend was starting to push shares of TA within range of triggering a major breakout trade above some key near-term overhead resistance levels at $9.20 to $9.40 a share.
Guess what happened? Shares of TravelCenters of America triggered that breakout a few trading sessions later with strong upside volume flows. Volume on August 19, shares of TA ripped sharply to the upside tagging an intraday high of $9.97 with heavy upside volume flows. Volume on that day registered over 697,000 shares, which is well above its three-month average action of 281,926 shares. This stock has continued to uptrend since taking out those resistance levels with shares of TA tagging a recent high of $11.84 a share. That represents a monster gain of 30% in just a few weeks for anyone who loaded up on TA in anticipation of that breakout.
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.