5 Stocks Under $10 Set to Soar Higher

DELAFIELD, Wis. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for $10 a share don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sod risk management are banking ridiculous coin on a regular basis.

Just take a look at some of the monster movers to the upside in the under-$10 complex from Wednesday, including Corporate Resource Services  (CRRS), which exploded higher by 61.6%; Voltari  (VLTC), which blazed a path higher by 42%; BioLife Solutions  (BLFS), which screamed sharply higher by 38.8%; and Celsus Therapeutics PLC  (CLTX), which soared higher by 36%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

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.

Parkervision


One under-$10 technology player that's starting to trend rapidly within range of triggering a major breakout trade is Parkervision  (PRKR), which designs, develops, and markets proprietary radio frequency technologies and products for use in semiconductor circuits for wireless communication products in the U.S. This stock has been destroyed by the sellers over the last three months, with shares plunging lower by 57%.

If you take a glance at the chart for Parkervision, you'll see that this stock has been under relentless selling for the last five months, with shares falling sharply lower from its high of $1.12 to its recent low of 33 cents per share. Shares of PRKR also just recently gapped down sharply lower from around 70 cents to that 33 cent low with massive downside volume. That said, this stock has now started to consolidate and trend sideways, with the stock moving between 33 cents on the downside and 42 cents on the upside. Shares of PRKR spiked higher on Wednesday right above some near-term support at 35 cents per share and it's now quickly moving within range of triggering a major breakout trade above the upper-end of its recent sideways trending chart pattern.

Market players should now look for long-biased trades in PRKR if it manages to break out above some key near-term overhead resistance at 42 cents per 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 426,685 shares. If that breakout triggers soon, then PRKR will set up to re-fill some of its previous gap-down-day zone that started near 70 cents per share.

Traders can look to buy PRKR off weakness to anticipate that breakout and simply use a stop that sits right around some near-term support at 35 cents per share. One can also buy PRKR off strength once it takes out 42 cents per share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Amber Road


Another under-$10 application software player that's starting to spike within range of triggering a big trade is Amber Road  (AMBR), which provides cloud-based global trade management solutions in the U.S. and internationally. This stock has been whacked lower by the sellers over the last six months, with shares dropping sharply by 36.9%.

If you take a look at the chart for Amber Road, you'll notice that this stock has recently attempted to carve out a major bottoming chart pattern, since shares of Amber Road have found buying interest around $6.87 to $6.85 a share. That potential bottom is coming after shares of Amber Road fell sharply from over $9.50 a share to its new 52-week low of $6.85 a share. Now shares of Amber Road are starting to rip higher off those support levels and it's quickly moving within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Market players should now look for long-biased trades in Amber Road if it manages to break out above some key near-term overhead resistance levels at $7.45 to $7.50 a share and then above $8 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 81,808 shares. If that breakout develops soon, then Amber Road will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $8.44 a share to $8.66 a share, or even $9 to $9.60 a share.

Traders can look to buy Amber Road off weakness to anticipate that breakout and simply use a stop that sits right around its new 52-week low of $6.85 a share. One can also buy Amber Road 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.

Orexigen Therapeutics


One under-$10 biopharmaceutical player that's starting to spike within range of triggering a big breakout trade is Orexigen Therapeutics  (OREX), which focuses on the development of pharmaceutical products in the U.S. This stock has been smacked lower by the bears over the last three months, with shares dropping big by 34.4%.

If you take a glance at the chart for Orexigen Therapeutics, you'll notice that this stock has been downtrending badly for the last two months, with shares falling sharply lower from its high of $8.24 a share to its recent low of $4.80 a share. Shares of Orexigen also just gapped down sharply from around $7 a share to under $5 a share with expanding downside volume. That said, this stock has now started to stabilize and trending sideways, with shares moving between $4.80 on the downside and $5.17 on the upside. This stock spiked higher on Wednesday right off that recent low and it's now moving within range of triggering a big breakout trade above the upper-end of its recent sideways trending chart pattern.

Traders should now look for long-biased trades in Orexigen if it manages to break out above some key near-term overhead resistance levels at $5.11 to $5.17 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 4.59 million shares. If that breakout hits soon, then Orexigen will set up to re-test or possibly take out its next major overhead resistance levels $5.75 to $6 a share, or even $6.50 to $7 a share.

Traders can look to buy Orexigen off weakness to anticipate that breakout and simply use a stop that sits right around that recent low of $4.80 a share. One can also buy Orexigen 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.

Frontier Communications


Another under-$10 communications player that's starting to trend within range of triggering a big breakout trade is Frontier Communications  (FTR), which provides regulated and unregulated voice, data, and video services to residential, business, and wholesale customers in the U.S. This stock has been hit hard by the sellers over the last three months, with shares off sharply by 32.3%.

If you look at the chart for Frontier Communications, you'll notice that this stock ripped sharply higher on Wednesday and broke out above some near-term overhead resistance at $5.36 a share with monster upside volume. Volume on the trading session registered over 57.76 million shares, which is well above its three-month average volume of 12.57 million shares. This move is now starting to push shares of Frontier within range of triggering a much bigger breakout trade above some key near-term overhead resistance levels.

Market players should now look for long-biased trades in Frontier if it manages to break out above some key near-term overhead resistance levels at $5.56 to $6 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 12.57 million shares. If that breakout gets started soon, then Frontier will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $6.35 a share to its 200-day moving average of $6.52 a share, or even $7 to $7.45 a share.

Traders can look to buy Frontier off weakness to anticipate that breakout and simply use a stop that sits right around some near-term support at $5.20 a share or near more support at $5.03 a share. One can also buy FTR off strength once it starts to move above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Aoxing Pharmaceuticals


One final under-$10 specialty pharmaceutical player that's starting to trend within range of triggering a big breakout trade is Aoxing Pharmaceuticals  (AXN), which researches, develops, manufactures, and distributes various narcotic, pain-management, and addiction treatment pharmaceutical products primarily in the People's Republic of China. This stock has been exploding higher over the last six months, with shares busting to the upside by a whopping 420%.

If you take a glance at the chart for Aoxing Pharmaceuticals, you'll see that this stock ripped sharply higher on Wednesday right off its 50-day moving average of $1.67 a share with decent upside volume flows. This spike to the upside has now started to push shares of Aoxing into breakout territory above some key near-term overhead resistance at $1.70 and above a massive downtrend line that dates back to February. Shares of Aoxing are now quickly moving within range of triggering a much bigger breakout trade above some more near-term overhead resistance levels.

Traders should now look for long-biased trades in Aoxing if it manages to break out above some near-term overhead resistance levels at $1.80 to $2 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action 632,019 shares. If that breakout triggers soon, then AXN will set up to re-test or possibly take out its next major overhead resistance levels at $2.08 to $2.29 a share, or even its 52-week high of $2.58 a share.

Traders can look to buy Aoxing off weakness to anticipate that breakout and simply use a stop that sits around some near-term support levels at $1.56 to $1.50 a share. One can also buy Aoxing 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.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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