WINDERMERE, Fla. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for less than $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 hot movers in the under-$10 complex from Wednesday, including Savannah Bancorp ( SAVB), which exploded 62%; GenMark Diagnostics ( GNMK), which soared by 22.4%; EnerNoc ( ENOC), which skyrocketed 22.8%; and TechTarget ( TTGT), which closed up 22.6%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading. I'm not as eager to recommend investing long term in stocks that trade less than $10 a share because these names can be very speculative, and the odds for picking the long-term winners aren't great. But I definitely love to trade stocks that are priced below $10. I like to view them as a trading vehicle with lots of volatility and lots of upside when the trade is timed right. >>5 Big Stocks Ready to Slingshot Higher 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.
James River CoalAnother under-$10 stock that looks ready to trigger a major breakout trade is James River Coal ( JRCC), which is engaged in processing and selling of thermal and metallurgical coal through eight active mining complexes located throughout eastern Kentucky, southern West Virginia and southern Indiana. This stock has been crushed by the bears so far in 2012, with shares off by over 60%. If you take a look at the chart for James River Coal, you'll see that this stock has been doing nothing but downtrending for the last six months, with shares dropping from $6.25 to its recent low of $1.68 a share. During that massive move lower, shares of JRCC have been consistently making lower highs and lower lows, which is bearish technical price action. That said, the stock has now started to rebound off its recent lows, and it's now challenging both its 50-day moving average of $2.41 and some near-term overhead resistance at $2.57 a share. Traders should now look for long-biased trades in JRCC if it can manage to trigger a break out above both its 50-day at $2.41 a share, and above that overhead resistance level of $2.57 a share with high volume. Look for volume off a sustained move or close above those levels that hits near or above its three-month average action of 2,350,330 shares. If that breakout triggers soon, then JRCC could easily setup to spike back toward its next major overhead resistance level at $3.85 a share. At last check, shares of JRCC have hit an intraday high today of $2.67 a share and volume is already hit 1.7 million shares. Just this morning, the company reported a smaller-than-expected quarterly loss of $25.8 million, or 74 cents per share, versus a net income of $800,000, or 2 cents per share, from a year earlier. The company said the market for power-generating coal was showing signs of a recovery following massive industry-wide cutbacks in production.
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