5 Stocks Under $10 Set to Soar

WINDERMERE, Fla. ( Stockpickr) -- There isn't a day that goes by on Wall Street where stocks trading near or 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 hot movers in the under-$10 complex from Wednesday, including Vringo ( VRNG), which skyrocketed higher by over 30%; Biolase ( BIOL), which spiked higher by over 30%; and Hydrogenics ( HYGS), which ripped to the upside by 10%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

>>5 Cash-Rich Companies to Buy This Fall

One low-priced stock that has demonstrated a lot of strength lately is Zogenix (ZGNX), which I highlighted in Sept. 14's " 5 Stocks Poised for Breakouts" at around $2.40 a share. I mentioned that ZGNX had been uptrending very strong, and the stock was quickly moving within range of triggering a major breakout trade. That trade would hit once ZGNX managed to clear some near-term overhead resistance at $2.54 to $2.60 a share with high volume.

Guess what happened? Shares of ZGNX went on to trigger that breakout with massive upside volume just a few days later. This stock is now printing new 52-week highs as I write this with shares trading at $3.23. That move has pushed ZGNX above some more resistance at $2.90 to $3.04 a share. If this stock can continue to trend above $2.90 to $3.04 a share with strong upside volume, then it has a great chance of tagging $4 to $5 a share in the very near future.

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.

>>5 Big Stocks to Trade for Post-Debate Gains

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.

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.  

If you liked this article you might like

Biotech Movers: Disappointment for Bristol-Myers Kidney Combo Boosts Exelixis

Stocks Mixed Again as Dow Declines but Nasdaq Remains on Track for Record Close

Stocks Turn Positive, Nasdaq Trades Above Record Closing High

Stock Futures Little Changed as Oil Prices Level Off