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 for $10 a share or less 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 Microvision (MVIS), which skyrocketed by 58.1%; Novogen (NVGN), which ripped higher by 40%; NII Holdings (NIHD), which soared by 21.3%; and Zynga (ZNGA), which trended up 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 I recently flagged that's skyrocketing higher today is molecular diagnostics player CombiMatrix (CBMX), which I highlighted in March 28's " 5 Stocks Under $10 Set to Soar" at around $3.20 a share. I mentioned in that piece that shares of CBMX had recently formed a triple-bottom chart pattern at $2.80 to $2.97 a share. The stock was starting to rebound off those major support levels, and it was quickly moving within range of triggering a major breakout trade above $3.73 to $3.78 a share.

Guess what happened? Shares of CBMX triggered that breakout twice since I wrote the article. The first time the stock popped up by 20% to $4.10 on April 1 and then quickly sold off back down to $3.32 a share. The second time has triggered today, and shares of CBMX skyrocketed higher by over 30% to hit its intraday high of $4.62 a share. Both moves produced ridiculous gians for anyone playing CBMX from the time I highlighted the breakout.

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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. These setups often produce monster moves higher in very short time frames.

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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