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 monster movers to the upside in the under-$10 complex from Wednesday, including Celsus Therapeutics  (CLTX), which exploded higher by 287.7%; Dot Hill  (HILL), which soared higher by 86.8%; Arch Coal  (ACI), which ripped up by 55.1%; and Corbus Pharmaceuticals  (CRBP - Get Report), which spiked sharply higher by 34.4%. 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 a monster under-$10 mover to the upside I flagged recently was biopharmaceutical player Corbus Pharmaceuticals  (CRBP - Get Report), which I featured in July 31's "5 Stocks Ready for Breakouts" at around $2.02 per share. I mentioned in that piece that shares of Corbus Pharmaceuticals had recently entered extremely oversold territory after the stock plunged off its $4.31 high to its 52-week low at that time of $1.88 a share. Oversold can always get more oversold, but I suggested traders watch for an oversold bounce if this stock started to trend over some near-term overhead resistance levels at $2.06 to $2.40 a share with high volume.

Guess what happened? Shares of Corbus Pharmaceuticals triggered that move in pre-market trading on Wednesday with massive upside volume flows. At one point during Wednesday's trading session, shares of Corbus Pharmaceuticals tagged an intraday high of $4.95 a share. That $4.95 high represented gains of well over 100% from the time I flagged this setup in my original article at around 2.02 a share. Volume was also massive, clocking in at over 43 million shares, which is well above its three-month average action of 131,350 a share. As you can see, trading under-$10 stocks that trigger breakout trades off extremely oversold levels can produce large profits in very short time frames.

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.


Quantum


One under-$10 data storage devices player that's starting to trend within range of triggering a big breakout trade is Quantum  (QTM), which provides scale-out storage, archive, and data protection solutions for small businesses to major enterprises in the Americas, Europe, and the Asia Pacific. This stock has been slaughtered by the sellers over the last three months, with shares down large by 40.5%.

If you take a glance at the chart for Quantum, you'll notice that this stock has been downtrending badly for the last four months, with shares moving sharply lower from its high of $2.22 to its new 52-week low of $1.02 a share. During that downtrend, this stock has been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of Quantum have now started to rebound off that $1.02 low and it broke out on Wednesday above some near-term overhead resistance at $1.11 with strong upside volume flows. Volume for that trading session registered over 4.2 million shares, which is well above its three-month average action of 1.77 million shares. That move is now quickly pushing shares of Quantum within range of triggering a much bigger breakout trade.

Market players should now look for long-biased trades in shares of Quantum if it manages to break out above some key near-term overhead resistance levels at $1.15 to $1.18 a share and then above more resistance at $1.20 to $1.26 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 of 1.77 million shares. If that breakout gets set off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $1.34 to its 50-day moving average of $1.46, or even its gap-down-day high from July at $1.53 to its 200-day moving average of $1.66 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $1.05 to its 52-week low of $1.02 a share. One can also buy shares of Quantum 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.

Porter Bancorp


Another under-$10 financial player that's starting to trend within range of triggering a big breakout trade is Porter Bancorp  (PBIB), which provides commercial and personal banking products and services, and financial services in Central Kentucky and Louisville. This stock has been on fire over the last three months, with shares up big by 60%.

If you take a look at the chart for Porter Bancorp, you'll notice that this stock has been uptrending strong over the last six months, with shares moving sharply higher from its low of 83 cents per share to its recent high of $3.43 a share. During that uptrend, shares of Porter Bancorp have been making mostly higher lows and higher highs, which is bullish technical price action. This stock has recently formed a double bottom chart pattern at $1.35 to $1.38 a share. Following that bottom, shares of Porter Bancorp have now started to trend back above both its 50-day moving average of $1.58 and its 20-day moving average of $1.62 a share. That spike is now starting to push this stock within range of triggering a big breakout trade above some near-term overhead resistance levels.

Market players should now look for long-biased trades in Porter Bancorp if it manages to break out above some near-term overhead resistance levels at $1.80 to $1.91 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 143,227 shares. If that breakout takes hold soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $2.20 or even that May one-day spike high of $3.43 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right around those recent double bottom support levels. One can also buy shares of Porter Bancorp 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.

Invitae

Another under-$10 stock that's starting to trend within range of triggering a major breakout trade is Invitae  (NVTA - Get Report), which provides genetic diagnostics for various hereditary disorders. This stock has been destroyed by the sellers over the last six months, with shares down large by 55.4%.

If you take a glance at the chart for Invitae, you'll notice that this stock has been downtrending badly for the last three months, with shares plunging sharply lower from its high of $16.39 to its new all-time low of $8.11 a share. During that downtrend, shares of Invitae have been making mostly lower highs and lower lows, which is bearish technical price action. That large drop has now pushed shares of Invitae into extremely oversold territory, since its current relative strength index reading is 33. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce to the upside from.

Traders should now look for long-biased trades in Invitae if it manages to break out above some near-term overhead resistance levels at 9.20 to $9.44 a share and then above more key resistance levels at its 20-day moving average of $9.59 to around $10.55 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 of 143,219 shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at around $11.50 to its 50-day moving average of $12.33, or even $13 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right around its all-time low of $8.11 a share. One can also buy shares of Invitae 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.

On Deck Capital


Another under-$10 financial player that's starting to spike within range of triggering a major breakout trade is On Deck Capital  (ONDK - Get Report), which provides financing products to small businesses in the U.S. This stock has been smacked lower by the bears over the last six months, with shares down sharply by 46%.

If you look at the chart for On Deck Capital, you'll see that this stock has been downtrending badly over the last six months, with shares plunging lower from its high of $23.83 to its new all-time low of $8.77 a share. During that collapse, shares of On Deck Capital have been making mostly lower highs and lower lows, which is bearish technical price action. That said, this stock has attempted to carve out a near-term bottom over the last few weeks, with shares finding buying interest at $8.87 to $8.77 a share. Shares of On Deck Capital have now started to spike higher off those support levels and it's quickly moving within range of triggering a major breakout trade above some key near-term overhead resistance levels. This potential breakout is also coming off oversold levels, since On Deck Capital's current relative strength index reading is 36.

Market players should now look for long-biased trades in On Deck Capital if it manages to break out above some near-term overhead resistance levels at $10.10 to its 20-day moving average of $10.71 a share and then above its recent gap-down-day higher of $11.30 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 of 426,069 shares. If that breakout materializes soon, then this stock will set up to re-fill some of its previous gap-down-day zone earlier this month that started near $13.70 a share.

Traders can look to buy On Deck Capital off weakness to anticipate that breakout and simply use a stop that sits right around some near-term support at $9 or around its new all-time low of $8.77 a share. One can also buy this stock off strength once it starts to blast above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

eGain


One final under-$10 business software and services player that's starting to trend within range of triggering a near-term breakout trade is eGain  (EGAN), which provides cloud-based and on-site customer engagement software solutions. This stock is off modestly over the last three months, with shares down by just 2.4%.

If you take a glance at the chart for eGain, you'll notice that this stock has been downtrending over the last two months, with shares dropping from its high of $5.18 to its recent low of $3.24 a share. During that downtrend, shares of eGain have been making mostly lower highs and lower lows, which is bearish technical price action. That said, this stock has been attempting to carve out a bottom over the last few weeks, with shares finding some buying interest at around $3.36 to $3.24 a share. Shares of eGain are now starting to trend higher off those support levels and it's quickly moving within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in eGain if it manages to break out above some key near-term overhead resistance levels at $3.67 to $3.76 a share and then above its 20-day moving average of $3.98 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 of 45,806 shares. If that breakout develops soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $4.29 to its 50-day moving average of $4.51, or even $5 a share.

Traders can look to buy eGain off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support at $3.24 a share. One can also buy this stock off strength once it starts to trend above 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 TK positions in the stocks mentioned.