5 Stocks Under $10 Set to Soar

WINDERMERE, Fla. ( Stockpickr) -- There isn't a day that goes by on Wall Street when certain 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 Cleantech Solutions ( CLNT), which soared by 17.3%; Keegan Resources ( KGN), which ripped to the upside by 16%; PURE Bioscience ( PURE), which trended up by 15.6%; and Inovio Pharmaceuticals ( INO), which exploded to the upside by 14.9%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

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One low-priced stock that I recently highlighted that went on to skyrocket is Otelco ( OTT), which I highlighted in Oct. 5's " 4 Stocks Under $10 Making Big Moves" at around $2 a share. I mentioned that OTT was ripping off support at $1.75 a share and was quickly moving into range of triggering a major breakout. That breakout was set to trigger once OTT took out some near-term overhead resistance at $2.14 with high volume.

Guess what happened? Shares of OTT exploded higher above $2.14 a share the next day with monster upside volume. Since then, strong upside volume has continued to flow into the stock as it recently hit a high of $3.19 a share. That's a monster gain in just a few days, and all anyone had to do was buy after they saw the price action and volume conformation. Traders should now look to get long OTT once it takes out $3.19 with above-average volume. This stock could still have more upside if that level gets taken out soon.

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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.

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.  

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