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 RADA Electronics (RADA) , which is exploding higher by 81%; Mitek Systems (MITK) , which is soaring by 46%; Acorn International (ATV) , which is ripping higher by 41%; and Technical Communications (TCCO) , which is surging by 30%. 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 specialty pharmaceutical player Agile Therapeutics (AGRX) , which I featured in Aug. 28's "5 Breakout Stocks Under $10 Set to Soar" at around $7.50 per share. I mentioned in that piece that shares of Agile Therapeutics recently formed a double bottom chart pattern at $5.56 to $5.80 a share. Following that bottom, shares of AGRX had started to uptrend and spike back above its 50-day moving average. That move was quickly pushing shares of AGRX within range of triggering a near-term breakout trade above some overhead resistance levels at $7.81 to $8 a share.
Guess what happened? Shares of Agile Therapeutics started to trigger that breakout the following trading session with decent upside volume flows. Volume on Sept. 2 registered 155,700 shares, which is well above its three month average action of 118,500 shares. Shares of AGRX have ripped higher since the volume started to come in as it broke above those resistance levels. This stock tagged an intraday high of $10.13 a share on Thursday, which represents a large gain of over 30% in just a few trading sessions. As you can see, trading low-priced stocks that break out with volume can produce large returns in very short time frames.
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.