5 Stocks Under $10 Set to Soar

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 sod risk management are banking ridiculous coin on a regular basis.

Just take a look at some of the big movers to the upside in the under-$10 complex from Wednesday, including WaferGen (WGBS) , which exploded higher by 53.8%; Nexvet Biopharma (NVET) , which ripped higher by 39.3%; Ascent Solar Technologies (ASTI) , which soared by 37%; and CEL-SCI (CVM) , which jumped higher by 20%. 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 stocks, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 stocks 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.

Sunesis Pharmaceuticals


One under-$10 biopharmaceutical player that's starting to trend within range of triggering major breakout trade is Sunesis Pharmaceuticals  (SNSS) , which focuses on the development and commercialization of oncology therapeutics for the treatment of solid and hematologic cancers. This stock has been hit hard by the sellers over the last three months, with shares down big by 50%.

If you take a glance at the chart for Sunesis Pharmaceuticals, you'll notice that this stock gapped down sharply back in July from over $3.50 a share to under $1 a share with heavy downside volume flows. Following that move, shares of Sunesis Pharmaceuticals have been bouncing around between $1.55 on the upside and $1 a share on the downside. This stock has just started to make higher lows over the last few weeks and it spike to the upside on Wednesday right off its 20-day moving average of $1.15 a share. That spike is now quickly pushing this stock within range of triggering a major breakout trade above a key downtrend line.

Market players should now look for long-biased trades in shares of Sunesis Pharmaceuticals if it manages to break out above that downtrend line that will trigger over some near-term resistance levels at $1.25 to $1.29 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 2.31 million 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 $1.41 to $1.50, or even $1.55 a share. Any high-volume move above $1.55 will then give this stock a chance to re-fill some of its previous gap-down-day zone from July that started above $3.50 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at its 20-day moving average of $1.15 to around $1.10 a share, or down near $1 a share. One can also buy shares of Sunesis Pharmaceuticals 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.

InspireMD


An under-$10 medical device player that's starting to spike within range of triggering a near-term breakout trade is InspireMD  (NSPR) , which focuses on the development and commercialization of proprietary MicroNet stent platform technology for the treatment of complex coronary and vascular diseases. This stock has been slammed lower by the sellers over the last six months, with shares down large by 68.5%.

If you take a look at the chart for InspireMD, you'll notice that this stock has been attempting to carve out a major bottoming chart pattern over the last month and change, with shares finding buying interest on a number of occasions at or around 18 cents per share. This stock ripped higher on Wednesday right above its 20-day moving average of 20 cents per share and right into its 50-day moving average of 22 cents per share. That spike is now quickly pushing shares of InspireMD within range of triggering a near-term breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades in InspireMD if it manages to break out above some key near-term overhead resistance levels at 23 to 25 cents per 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 1.08 million shares. If that breakout gets started soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at 31 to 32 cents per share, or even 35 cents per share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right around its 20-day moving average of 20 cents or near those recent major bottoming levels at around 18 cents per share. One can also buy shares of InspireMD 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.

IDI

One under-$10 advertising services player that's starting to trend within range of triggering a big breakout trade is IDI  (IDI) , which operates as an information solutions provider focused on the data-fusion market. This stock has hit hard by the sellers over the last three months, with shares down notably by 27.2%.

If you take a glance at the chart for IDI, you'll notice that this stock has been downtrending badly over the last month and change, with shares falling sharply off its high of $11.44 to its recent low of $5.59 a share. During that downtrend, shares of IDI have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock has now started to spike a bit higher off that recent low of $5.59 a share and it's beginning to move within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in IDI if it manages to break out above both its 20-day moving average of $6.77 and its 200-day moving average of $6.85 and then once it clears more resistance at $7 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 91,195 shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $7.50 to $8, or even its 50-day moving average of $8.70 to $9 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 near-term support at $6 a share or near that recent low of $5.59 a share. One can also buy shares of IDI off strength once it starts to bust out above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Stemline Therapeutics


Another under-$10 clinical stage biopharmaceutical player that's starting to spike within range of triggering a big breakout trade is Stemline Therapeutics  (STML) , which focuses on the discovery, acquisition, development and commercialization of proprietary therapeutics for cancer stem cells and bulk tumors in the U.S. This stock has been smacked lower by the sellers over the last six months, with shares off sharply by 40.3%.

If you look at the chart for Stemline Therapeutics, you'll see that this stock has been downtrending badly for the last six months, with shares falling sharply from over $17 a share to its new all-time low of $8.31 a share. During that downtrend, shares of Stemline Therapeutics have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock has been attempting to carve out a major bottoming chart pattern over the last month and change, with shares finding some buying interest between $8.73 and $8.31 a share. This stock also ripped higher on Wednesday back above its 20-day moving average of $9.22 a share with slight above-average volume. That move is now quickly pushing shares of Stemline Therapeutics within range of triggering a big breakout trade.

Market players should now look for long-biased trades in Stemline Therapeutics if it manages to break out above some near-term overhead resistance levels at $9.71 to around $10 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 90,642 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 its 50-day moving average of $10.60 to $10.73, or $10.92 to $12 a share.

Traders can look to buy Stemline Therapeutics off weakness to anticipate that breakout and simply use a stop that sits right below $9 a share, or down hear $8.47 to $8.31 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.

Century Aluminum


An under-$10 basic materials player that's starting to trend within range of triggering a big breakout trade is Century Aluminum  (CENX) , which produces primary aluminum in the U.S. and Iceland. This stock has been destroyed by the bears over the last six months, with shares down large by 62.9%.

If you take a glance at the chart for Century Aluminum, you'll notice that this stock has been uptrending strong over the last few weeks, with shares moving higher from its low of $4.07 to its intraday high on Wednesday of $5.92 a share. During that uptrend, this stock has been making mostly higher lows and higher highs, which is bullish technical price action. Shares of Century Aluminum ripped higher on Wednesday right off its 20-day moving average of $5.36 a share with strong upside volume flows. That move is now quickly pushing this stock 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 Century Aluminum if it manages to break out above some near-term overhead resistance levels at $6 to $6.39 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 2.76 million shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out its next major overhead resistance level at its gap-down-day high of $7.42 from back in August. Any high-volume move above $7.42 will then give this stock a chance to re-fill that gap back to around $9 a share.

Traders can look to buy Century Aluminum off weakness to anticipate that breakout and simply use a stop that sits right below its 20-day moving average of $5.36 or around more key near-term support at $4.95 a share. One can also buy this stock 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.

 

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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