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 XTL Biopharmaceuticals (XTLB) , which exploded higher by 104%; Qualstar (QBAK) , which ripped sharply higher by 37%; Female Health Company (FHCO) , which spiked big to the upside by 32%; and One Horizon (OHGI) , which jumped higher by 10.5%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

One example of an under-$10 stock I flagged recently that exploded to the upside was networking solutions player Aviat Networks (AVNW - Get Report) , which I featured in July 18's "5 Stocks Under $10 Set to Soar" at around $1.23 per share. I mentioned in that piece that shares of Aviat Networks had been uptrending over the last two months and change, with shares marching higher from its low of 99 cents per share to its recent high of $1.35 a share. That uptrend was starting to push shares of AVNW within range of triggering a major breakout trade above some near-term overhead resistance levels at $1.28 to $1.30 a share and then above $1.35 a share.

Guess what happened? Shares of Aviat Networks started to trigger that breakout in late August with decent upside volume flows. Volume on August 21 registered 928,000 shares, which is well above its three month average volume of 375,556 shares. Shares of AVNW have uptrended strong since triggering that breakout, with the stock tagging a recent high of $1.82 a share. During that uptrend, shares of AVNW have continued to make higher lows and higher highs, which is bullish technical price action. That trend would have been easy to ride since AVNW never violated its previous lows as it continued to march higher. That move represents a massive gain of close to 50% for anyone who bought AVNW and anticipated the breakout.

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.

With that in mind, here's a look at several under-$10 stocks that look poised to potentially trade higher from current levels.

WaferGen Bio-Systems

One under-$10 medical diagnostic and testing equipment player that's quickly moving within range of triggering a big breakout trade is WaferGen Bio-Systems (WGBS) , which develops, manufactures and sells systems for gene expression quantification, genotyping and stem cell research for the life sciences and pharmaceutical drug discovery industries in the U.S., Canada, Europe and the Asia Pacific. This stock has been under heavy selling pressure over the last three months, with shares down large by 81%.

If you take a glance at the chart for WaferGen Bio-Systems, you'll see that this stock has been trending sideways and consolidating for the last month and change, with shares moving between $4 on the downside and around $5 on the upside. Shares of WGBS have now started to take out some near-term overhead resistance levels at $4.50 to $4.57 a share. That move is quickly pushing shares of WGBS within range of triggering an even bigger breakout trade.

Traders should now look for long-biased trades in WGBS if it manages to break out above Thursday's intraday high of $4.70 a share to some more key overhead resistance at $5 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 16,848 shares. If that breakout triggers soon, then WGBS will set up to re-test or possibly take out its next major overhead resistance levels $7 to its 50-day moving average of $7.27 a share, or even $8 to $8.50 a share.

Traders can look to buy WGBS off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $4.26 to $4.14 a share or right below its 52-week low of $4 a share. One can also buy WGBS off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Jakks Pacific

Another under-$10 stock that's starting to move within range of triggering a big breakout trade is Jakks Pacific (JAKK - Get Report) , which designs, produces, markets and distributes toys and related products, pet toys, consumables and related products, electronics and related products, kids indoor and outdoor furniture, and other consumer products. This stock hasn't done much over the last three months, with shares up just 1.1%.

If you take a look at the chart for Jakks Pacific, you'll see that this stock recently formed a double bottom chart pattern at $6.47 to $6.46 a share. Following that bottom, shares of JAKK have started to spike higher back above its 50-day moving average of $6.76 a share and it has just started to take out its 200-day moving average of $7.22 a share. That bullish move is now quickly pushing shares of JAKK within range of triggering a big breakout trade above some near-term overhead resistance.

Market players should now look for long-biased trades in JAKK if it manages to break out above some near-term overhead resistance levels at $7.33 to $7.60 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 427,702 shares. If that breakout kicks off soon, then JAKK will set up to re-test or possibly take out its next major overhead resistance levels at $8.40 to $8.60 a share, or even $9 to its 52-week high at $9.48 a share.

Traders can look to buy JAKK off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $6.76 a share or near those double bottom support levels. One can also buy JAKK 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.

LoJack

Another under-$10 stock that's starting to move within range of triggering a big breakout trade is LoJack (LOJN) which provides technology products and services for the tracking and recovery of mobile assets, stolen vehicles, motorcycles, construction equipment, motorcycles, cargo and people at risk of wandering. This stock has been hit hard by the sellers over the last three months, with shares down sharply by 34%.

If you take a glance at the chart for LoJack, you'll see that this stock has been downtrending badly over the last three months, with shares sliding lower from its high of $6.18 to its recent low of $3.77 a share. During that downtrend, shares of LOJN have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of LOJN over the last month have started to trend sideways and consolidate, with shares moving between $3.77 on the downside and $4.20 on the upside. Shares of LOJN nave how started to spike higher off that $3.77 low with monster upside volume. That spike is quickly pushing shares of LOJN within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in LOJN if it manages to break out above some near-term overhead resistance levels $4 to $4.14 a share and then above $4.20 to its 50-day moving average of $4.33 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 40,739 shares. If that breakout materializes soon, then LOJN will set up to re-test or possibly take out its next major overhead resistance levels at $4.80 to its 200-day moving average at $4.92 a share, or even $5.25 to $5.30 a share.

Traders can look to buy LOJN off weakness to anticipate that breakout and simply use a stop that sits right below its intraday low of $3.76 a share. One can also buy LOJN off strength once it starts to bust above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Sportsman's Warehouse

An under-$10 sporting goods player that's starting to trend within range of triggering a big breakout trade is Sportsman's Warehouse (SPWH - Get Report) , which operates as an outdoor sporting goods retailer in the U.S. This stock has been drilled by the sellers so far in 2014, with shares off sharply by 29%.

If you look at the chart for Sportsman's Warehouse, you'll notice that this stock has recently come out of a downtrend that was marked by the $5.43 low in early September. Since tagging that low, shares of SPWH have now started to uptrend and move back above its 50-day moving average. Shares of SPWH have also recently formed a major bottoming chart pattern right above its 50-day, with the stock finding buying interest at $6.50, $6.26 and $6.40 a share. Shares of SPWH are now starting to bounce higher off those support levels and it's quickly moving within range of triggering a big breakout trade.

Market players should now look for long-biased trades in SPWH if it manages to break out above some near-term overhead resistance levels at $7 to $7.25 a share and then above more resistance at $7.46 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 263,769 shares. If that breakout triggers soon, then SPWH will set up to re-test or possibly take out its next major overhead resistance levels at $8 to $8.73, or even $9.50 to $10.14 a share.

Traders can look to buy SPWH off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $6.40 to $6.26 a share. One can also buy SPWH 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.

Zogenix

One more under-$10 stock that's quickly moving within range of triggering a major breakout trade is Zogenix (ZGNX - Get Report) , which develops and commercializes therapies for the treatment of central nervous system disorders and pain. This stock has been destroyed by the bears so far in 2014, with shares down sharply by 63%.

If you take a glance at the chart for Zogenix, you'll notice that this stock has formed a major bottoming chart pattern over the last two months and change, with shares finding buying interest each time it has pulled back below $1.20 a share. That bottoming pattern is coming after shares of ZGNX were downtrending badly for the last six months, with shares dropping sharply from over $3 to its new 52-week low of $1.14 a share. Shares of ZGNX have now started to rip higher right above some key near-term support levels at $1.15 to $1.14 a share. That move is quickly pushing shares of ZGNX within range of triggering a major breakout trade above some near-term overhead resistance levels.

Traders should now look for long-biased trades in ZGNX if it manages to break out above some near-term overhead resistance at its 50-day moving average of $1.28 a share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average action of 1.78 million shares. If that breakout triggers soon, then ZGNX will set up re-test or possibly take out its next major overhead resistance levels at $1.43 to $1.47 a share. Any high-volume move above those levels will then give ZGNX a chance to tag its next major overhead resistance levels at $1.60 to $1.73 a share, or even $1.80 to $2 a share.

Traders can look to buy ZGNX off weakness to anticipate that breakout and simply use a stop that sits right below its new 52-week low of $1.14 a share. One can also buy ZGNX off strength once it starts to clear its 50-day at $1.28 a share 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.