5 Stocks Under $10 Set to Soar: Must-See Charts

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 sod risk management are banking ridiculous coin on a regular basis.

Just take a look at some of the monster movers to the upside in the under-$10 complex from Wednesday, including Memorial Production Partners (MEMP) , which ripped higher by 51.3%; DryShips (DRYS) , which soared higher by 42.3%; Azure Midstream Partners (AZUR) ,which surged by 39.2%; and Globus Maritime (GLBS) , which jumped by 38.8%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

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 stocks, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 stocks 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.

Chesapeake Energy

One under-$10 energy player that's starting to spike within range of triggering big breakout trade is Chesapeake Energy  (CHK) , which produces oil and natural gas through acquisition, exploration and development of from underground reservoirs in the U.S. This stock has been smoked by the bears over the last six months, with shares down large by 62.6%.

If you take a glance at the chart for Chesapeake Energy, you'll notice that this stock ripped sharply higher on Wednesday right off some near-term support at $3.93 a share with heavy upside volume flows. Volume on the day registered over 29 million shares, which is well above its three-month average action 21.54 million shares. This high-volume spike to the upside is now quickly pushing shares of Chesapeake Energy within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Market players should now look for long-biased trades in shares of Chesapeake Energy if it manages to break out above its 20-day moving average of $4.51 a share and then once it clears some more key resistance at $4.67 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 21.42 million shares. If that breakout fires off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $5.50 to $5.71, or even its 50-day moving average of $5.99 to $6.50 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support at $3.93 a share. One can also buy shares of Chesapeake Energy off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Biodel


Another under-$10 stock that's starting to trend within range of triggering a big breakout trade is Biodel  (BIOD) , which focuses on the development and commercialization of treatments for diabetes in the U.S. This stock has been destroyed by the sellers over the last six months, with shares plunging lower by 73.2%.

If you take a look at the chart for Biodel, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at 22 to 23 cents per share. Following that bottom, shares of Biodel have now started to rip sharply higher with a number of strong upside volume days. This high-volume spike is now quickly pushing shares of Biodel within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Market players should now look for long-biased trades in Biodel if it manages to break out above its 20-day moving average of 30 cents per share and its 50-day moving average of 33 cents per share and then above more key resistance at 35 cents per share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 1.39 million shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at 39 to 40 cents per share, or even 45 to 50 cents per share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right around some near-term support at 25 cents per share or near those recent double bottom support levels. One can also buy shares of Biodel off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Gastar Exploration

Another under-$10 stock that's starting to spike within range of triggering a major breakout trade is Gastar Exploration  (GST) , which engages in the exploration, development and production of oil, condensate, natural gas and natural gas liquids in the U.S. This stock has been hit hard by the sellers over the last six months, with shares moving sharply lower by 55.8%.

If you take a glance at the chart for Gastar Exploration, you'll notice that this stock ripped sharply higher on Wednesday right above its 20-day moving average of $1.26 a share with above-average volume. Volume on the day registered over 884,000 shares, which is well above its three-month average action of 694,703 shares. This high-volume spike to the upside also pushed shares of Gastar Exploration back above its 50-day moving average of $1.43 a share, and it's quickly pushing the stock within range of triggering a major breakout trade.

Traders should now look for long-biased trades in Gastar Exploration if it manages to break out above some key near-term overhead resistance levels at $1.48 to $1.61 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 694,703 shares. If that breakout develops soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $1.80 to $1.93 a share. Any high-volume move above those levels will then give this stock a chance to make a run at its 200-day moving average of $2.13 to $2.50 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $1.22 a share. One can also buy shares of Gastar Exploration off strength once it starts to trend above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Lombard Medical


Another under-$10 stock that's starting to move within range of triggering a big breakout trade is Lombard Medical  (EVAR) , which develops, manufactures and markets endovascular stent-grafts for the repair of aortic aneurysms in the U.S., the U.K., Germany, Japan and internationally. This stock has been under heavy selling pressure over the last six months, with shares down huge by 66.1%.

If you look at the chart for Lombard Medical, you'll notice that this stock has been consolidating and trending sideways over the last month or so, with shares moving between $1.25 on the downside and $1.66 on the upside. Shares of Lombard Medical spiked a bit higher on Wednesday right into its 20-day moving average of $1.39 a share with above-average volume. This high-volume trend to the upside is now quickly pushing shares of Lombard Medical within range of triggering a big breakout trade above the upper-end of its recent sideways trending chart pattern.

Market players should now look for long-biased trades in Lombard Medical if it manages to break out above some key near-term overhead resistance levels at $1.48 to $1.53 a share and then above more key resistance at $1.66 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 22,982 shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $2 to its 50-day moving average of $2.27, or even $2.50 to $2.75 a share.

Traders can look to buy Lombard Medical off weakness to anticipate that breakout and simply use a stop that sits right around its new 52-week low of $1.25 a share. One can also buy this stock off strength once it starts to bust above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Vanguard Natural Resources


One final under-$10 energy player that's starting to spike within range of triggering a major breakout trade is Vanguard Natural Resources  (VNR) , which acquires and develops oil and natural gas properties in the U.S. This stock has been smashed by the bears over the last six months, with shares down huge by 79%.

If you take a glance at the chart for Vanguard Natural Resources, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $2.41 to $2.56 a share. Following that bottom, shares of Vanguard Natural Resources have now started to spike sharply higher with a number of monster upside volume days. On Wednesday, this stock ripped up 23.7% and volume registered over 4 million shares, which is well above its three-month average action of 1.48 million shares. This high-volume explosion to the upside is now quickly pushing shares of Vanguard Natural Resources within range of triggering a major breakout trade.

Traders should now look for long-biased trades in Vanguard Natural Resources if it manages to break out above some near-term overhead resistance levels at $3.33 a share and then above its 20-day moving average of $3.78 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.48 million shares. If that breakout kicks off soon, then this stock will set up to re-fill some of its previous gap-down-day zone from December that started around $5.50 a share.

Traders can look to buy shares of Vanguard Natural Resources off weakness to anticipate that breakout and simply use a stop that sits right below $3 a share or down near those recent double bottom support levels. One can also buy this stock off strength once it starts to move above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.