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 Kingtone Wirelessinfo Solutions (KONE) , which ripped higher by 27%; DRDGOLD (DRD) - Get Report , which spiked higher by 19%; Comstock Mining (LODE) - Get Report , which surged higher by 17%; and Novogen (NVGN) , which jumped higher by 16%. 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 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.

RADA Electronic Industries

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One under-$10 defense electronics contractor that's starting to trend within range of triggering a near-term breakout trade is RADA Electronic Industries (RADA) - Get Report , which is engaged in the development, manufacture, and sale of defense electronics to various air forces and companies worldwide. This stock has been on fire over the last six months, with shares ripping higher by 73%.

If you take a glance at the chart for RADA Electronic Industries, you'll notice that this stock has been finding some buying interest over the last two months and change, each time it has pulled back to around $2.35 to just below $2.30 a share. Shares of RADA are now starting to spike higher off those support levels and it's also starting to trend back above its 50-day moving average of $2.60 a share. That move is quickly pushing shares of RADA within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in RADA if it manages to break out above some near-term overhead resistance at $2.84 a share to just above $3 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 1.01 million shares. If that breakout hits soon, then RADA will set up to re-test or possibly take out its next major overhead resistance levels at $3.86 to $4 a share.

Traders can look to buy RADA off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $2.26 to around $2 a share. One can also buy RADA off strength once it starts to take out those breakouts levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Biostar Pharmaceuticals

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Another under-$10 healthcare player that's starting to move within range of hitting a near-term breakout trade is Biostar Pharmaceuticals (BSPM) , which develops, manufactures, and markets over-the-counter (OTC) and prescription pharmaceutical products for various diseases and conditions in the People's Republic of China. This stock has been hit by the sellers over the last three months, since shares are off by 25%.

If you take a look at the chart for Biostar Pharmaceuticals, you'll notice that this stock has been trying to carve out a bottom over the last month and change, with shares finding buying interest each time it has pulled back to just under $1.10 a share. Shares of BSPM showed relative strength on Thursday after the stock spike 3.8% higher versus an overall downtrending market. That spike is starting to push shares of BPSM within range of triggering a near-term breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades in BSPM if it manages to break out above some near-term overhead resistance levels at $1.10 to $1.15 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 83,151 shares. If that breakout triggers soon, then BSPM will set up to re-test or possibly take out its next major overhead resistance levels at $1.21 to its 50-day moving average of $1.23 a share. Any high-volume move above $1.23 will then give BSPM a chance to tag its next major overhead resistance levels at $1.40 to its 200-day moving average of $1.48 a share.

Traders can look to buy BSPM off weakness to anticipate that breakout and simply use a stop that sits right below its 52-week low of $1.02 a share. One can also buy BSPM 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.

ChinaNet Online Holdings

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One under-$10 advertising player that's starting to move within range of triggering a near-term breakout trade is ChinaNet Online Holdings (CNET) - Get Report which provides business-to-businesses Internet services for small and medium enterprises (SMEs) sales networks in the People's Republic of China. This stock has been under some selling pressure over the last three months, with shares off by 29%.

If you take a glance at the chart for ChinaNet Online Holdings you'll see that this stock has been uptrending over the last few weeks, with shares moving higher from its low of $1.15 to its recent high of $1.45 a share. During that uptrend, shares of CNET have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CNET within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in CNET if it manages to break out above some near-term overhead resistance levels at $1.45 to its 50-day moving average of $1.54 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 volume of 833,783 shares. If that breakout develops soon, then CNET will set up to re-test or possibly take out its next major overhead resistance levels at $1.73 to $2 a share, or even $2.25 to $2.50 a share.

Traders can look to buy CNET off weakness to anticipate that breakout and simply use a stop that sits right around some near-term support levels at $1.25 to $1.15 a share. One can also buy CNET 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.

Skilled Healthcare Group

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Another under-$10 healthcare player that's quickly moving within range of triggering a big breakout trade is Skilled Healthcare Group (SKH) , which owns and operates skilled nursing facilities, assisted living facilities, hospices, home health providers, and a rehabilitation therapy business. This stock has been on fire over the last three months, with shares ripping higher by 37%.

If you look at the chart for Skilled Healthcare Group, you'll see that this stock has been uptrending strong over the last three months, with share moving higher from its low of $6.06 a share to its recent high of $9 a share. During that uptrend, shares of SKH have been making mostly higher lows and higher highs, which is bullish technical price action. Shares of SKH recently pulled back from $9 to right above its 50-day moving average at that time of $7.50 a share. This stock has recently started to rebound off that $7.52 level and it's now quickly moving 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 SKH if it manages to break out above some near-term overhead resistance levels at $8.84 to its 52-week high at $9 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 150,667 shares. If that breakout materializes soon, then SKH will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $12 to $14 a share.

Traders can look to buy SKH off weakness to anticipate that breakout and simply use a stop that sits right around some near-term support at $8.29 a share or down near its 50-day at $7.60 a share if you want to give it more room. One can also buy SKH 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.

Primero Mining Corp.

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One final under-$10 gold player that's starting to move within range of triggering a big breakout trade is Primero Mining Corp. (PPP) , which is engaged in the acquisition, exploration, development, and production of precious metal properties in Canada and Mexico. This stock has been annihilated by the bears over the last six months, with shares pushed sharply lower by 43%.

If you take a glance at the chart for Primero Mining Corp., you'll see that this stock has been uptrending over the last month, with shares moving higher from its low of $3.09 to its recent high of $4.73 a share. During that uptrend, shares of PPP have been consistently making higher lows and higher highs, which is bullish technical price action. Shares of PPP have now started to spike higher off its 50-day moving average of $3.90 a share and it's quickly trending within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in PPP if it manages to break out above some near-term overhead resistance levels at $4.73 to $4.87 a share and then above $5.08 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 1.28 million shares. If that breakout gets started soon, then PPP will set up re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $5.80 to more resistance at $6.20 a share, or even $6.50 a share.

Traders can look to buy PPP off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $3.87 to around $3.50 a share. One can also buy PPP 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.

-- Written by Roberto Pedone in Delafield, Wis.

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com

and

Forbes.com

. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.