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 Blonder Tongue Labs (BDR) , which ripped higher by 46.1%; Can-Fite BioPharma (CANF) , which spiked higher by 29.7%; Abengoa SA (ABGB) , which jumped to the upside by 25%; and Methes Energies (MEIL) , which surged higher by 24.9%. 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.

Cinedigm


One under-$10 stock that's staring to trend within range of triggering big breakout trade is Cinedigm  (CIDM) , which distributes and aggregates independent movie, television and other short form content in the U.S. This stock has been smacked down by the sellers over the last six months, with shares off sharply by 61.7%.

If you take a glance at the chart for Cinedigm, you'll notice that this stock has been attempting to carve out a bottom over the last few weeks, with shares finding some buying interest at around 50 cents per share. Shares of Cinedigm spiked higher on Wednesday right above 50 cents per share and back above its 20-day moving average of 56 cents per share. That move 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 shares of Cinedigm if it manages to break out above some near-term overhead resistance levels at 60 cents to its 50-day moving average of 62 cents per 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 452,005 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 69 cents to 75 cents per share, or even 80 cents to 90 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 some key near-term support at 50 cents per share or around its new 52-week low of 47 cents per share. One can also buy shares of Cinedigm 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.

Rock Creek Pharmaceuticals

Another under-$10 stock that's starting to spike within range of triggering a big breakout trade is Rock Creek Pharmaceuticals  (RCPI) , which focuses on the discovery, development and commercialization of therapies for chronic inflammatory disease, neurologic disorders and behavioral health. This stock has been smashed lower by the sellers over the last six months, with shares down big by 62.7%.

If you take a look at the chart for Rock Creek Pharmaceuticals, you'll notice that this stock ripped sharply higher on Wednesday right off its 20-day moving average of $1.01 a share with strong upside volume flows. Volume on Wednesday registered over 278,000 shares, which is well above its three-month average action of 190,295 shares. That move is now quickly pushing shares of Rock Creek Pharmaceuticals within range of triggering a big breakout trade above a key downtrend line that dates back to July.

Market players should now look for long-biased trades in Rock Creek Pharmaceuticals if it manages to clear that downtrend line which will trigger over $1.12 to $1.22 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 190,295 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 $1.31 to $1.35, or even $1.56 to $2 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 levels at 97 cents to 93 cents per share. One can also buy shares of Rock Creek Pharmaceuticals 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.

Fortress Investment Group

One under-$10 financial stock that's starting to trend within range of triggering a near-term breakout trade is Fortress Investment Group  (FIG) , which publicly owned investment manager. This stock has been hit by the sellers over the last three months, with shares off sharply by 25.7%.

If you take a glance at the chart for Fortress Investment Group, you'll notice that this stock has been uptrending a bit over the last few weeks, with shares moving higher from its low of $5.15 to its recent high of $5.86 a share with strong upside volume flows. During that uptrend, shares of Fortress Investment Group have been consistently making higher lows and higher highs, which is bullish technical price action. This stock moved modestly higher on Wednesday back above its 20-day moving average of $5.60 a share with strong upside volume flows. That move is now quickly pushing this stock within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Fortress Investment Group if it manages to break out above some near-term overhead resistance levels at $5.86 to around $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 action of 965,947 shares. If that breakout begins 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 $6.19 to $6.27, or even $6.50 to its 200-day moving average of $7.20 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 $5.36 to $5.15 a share. One can also buy shares of Fortress Investment Group 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.

Ocera Therapeutics


Another under-$10 clinical stage biopharmaceutical stock that's starting to trend within range of triggering a big breakout trade is Ocera Therapeutics  (OCRX) , which is focused on acute and chronic orphan liver diseases. This stock has been under pressure by the sellers over the last six months, with shares off notably by 21.9%.

If you look at the chart for Ocera Therapeutics, you'll see that this stock ripped sharply higher on Wednesday right off its 20-day moving average of $3.68 a share with strong upside volume flows. Volume for the day registered over 429,000 shares, which is well above its three-month average action of 83,838 shares. This high-volume move spike to the upside is now quickly pushing shares of Ocera Therapeutics within range of triggering a major breakout trade above some key near-term overhead resistance levels.

Market players should now look for long-biased trades in Ocera Therapeutics if it manages to break out above its 50-day moving average of $3.87 and then above more key resistance levels at $3.95 to around $4.20 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 83,838 shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $4.46 to $4.48, or even its 200-day moving average of $4.62 to $4.80 a share.

Traders can look to buy Ocera Therapeutics off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $3.46 to $3.30 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.

CyberOptics


One final under-$10 stock that's starting to trend within range of triggering a near-term breakout trade is CyberOptics  (CYBE) , which develops, manufactures, and sells high precision sensor products worldwide. This stock has been under pressure by the bears over the last six months, with shares down sharply by 35.4%.

If you take a glance at the chart for CyberOptics, you'll notice that this stock ripped higher on Wednesday back above both its 20-day moving average of $6.63 and its 50-day moving average of $6.54 a share with strong upside volume flows. Volume on the day registered over 76,000 shares, which is well above its three-month average action of 25,037 shares. This high-volume move to the upside is now quickly pushing shares of CyberOptics within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in CyberOptics if it manages to break out above some near-term overhead resistance at $7 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 25,037 shares. If that breakout fires off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $8 to $8.50, or even its 200-day moving average of $9.28 to $9.75 a share.

Traders can look to buy shares of CyberOptics off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $6.40 to $6.10 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.

Disclosure: 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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