These 5 Stocks Under $10 Could Explode Up Soon

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.

Low-priced stocks are something that I tweet about on a regular basis. These are also the exact type of stocks that I love to trade and alert in real time. 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.

Global Eagle Entertainment

If you take a look at the chart for Global Eagle Entertainment (ENT) , you'll notice that this stock recently gapped down sharply lower from $6 a share to its new 52-week low of $4 a share with heavy downside volume. Following that move, this stock has now started to rebound off that $4 low, and it's quickly trending within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Global Eagle Entertainment if it manages to break out above some near-term resistance levels at $4.50 to $4.75 a share with strong volume. Look for a sustained move above those levels with volume that hits near or above its three-month average of 535,825 shares. If that breakout fires off soon, then this stock will set up to make a run at its 20-day moving average of $5.44 to its 50-day moving average of $6.13 a share.

Merrimack Pharmaceuticals

If you take a look at the chart for Merrimack Pharmaceuticals (MACK) , you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $2.83 to $2.90 over the last two months. This stock has now started to rebound off those support levels, and it's beginning to trend within range of triggering a big breakout trade.

Traders should now look for long-biased trades in Merrimack Pharmaceuticals if it manages to break out above some near-term resistance levels at $3.18 to $3.32 a share with high volume. Look for a sustained trend above those levels with volume that registers near or above its three-month average of 3.65 million shares. If that breakout hits soon, then this stock will set up to make a run at its 50-day moving average of $3.44 a share to possibly $4.25 to $4.86 a share. 

Achillion Pharmaceuticals

If you take a look at the chart for Achillion Pharmaceuticals (ACHN) , you'll notice that this stock has been consolidating and trending sideways over the last four months, with shares moving between $3.75 on the downside and $4.87 on the upside. This stock has now started to bounce higher off the lower-end of that large range, and it's beginning to trend within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Achillion Pharmaceuticals if it manages to break out above its 20-day moving average of $4.26 a share and then above more resistance at $4.39 with high volume. Look for a sustained move above those levels with volume that hits near or above its three-month average of 1.56 million shares. If that breakout materializes soon, then this stock will set up to make a run at $4.74 to $4.87 a share. Any high-volume move above $4.87 and this stock could easily rip toward $5.50 to $6 a share.

Advaxis

If you take a look at the chart for Advaxis (ADXS) , you'll notice that this stock is trending higher on Thursday right off its 20-day moving average of $8.99 a share with decent upside volume. This jump to the upside is now quickly pushing this stock within range of triggering a big breakout trade above some key resistance levels.

Traders should now look for long-biased trades in Advaxis if it manages to break out above its 200-day moving average of $9.45 a share and then once it clears more resistance levels at $9.50 to $9.74 with volume that registers near or above its three-month average of 670,342 shares. If that breakout hits soon, then this stock will set up to make a run at its next major resistance levels at $10.88 to $12.66 a share.

Weatherford International

If you take a look at the chart for Weatherford (WFT) , you'll notice that this stock has been uptrending strong over the last four months, with shares moving higher off its low of $3.73 to its recent high of $6.29 a share. During that move, this stock has been making mostly higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in Weatherford if it manages to break out above some near-term resistance levels at $6.21 to $6.30 and then above $6.40 a share with volume that hits near or above its three-month average of 22.12 million shares. If that breakout triggers soon, then this stock will set up to make a run at its next major resistance levels at $7 to its 52-week high of $8.49 a share.