5 Stocks Under $10 Set to Soar

There isn't a day that goes by on Wall Street that 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 NeoGenomics, which soared by 24.6%; National Bank of Greece, which ripped higher by 13.4%; National Holdings, which surged by 13.1%; and Northwest Biotherapeutics, which jumped by 12.8%. 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.

Biolase


One under-$10 stock that's staring to trend within range of triggering major breakout trade is Biolase  (BIOL) , which develops, manufactures and markets laser systems in dentistry and medicine in the U.S. and internationally. This stock has been hammered by the sellers over the last six months, with shares down large by 63.2%.

If you take a glance at the chart for Biolase, you'll notice that this stock recently plunged sharply lower off its $1.66 a share September high to its new 52-week low of 84 cents per share.. During that sharp drop, shares of Biolase have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of Biolase have now started to rebound and trend a bit higher off that 84 cents per share low to its recent high of $1.08 a share. This stock is now setting up to potentially trigger a major breakout trade above some near-term overhead resistance levels.

Market players should now look for long-biased trades in shares of Biolase if it manages to break out above some near-term overhead resistance levels at 99 cents to $1.02 a share and then above more key near-term resistance at $1.08 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 102,715 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 its 50-day moving average of $1.28 to $1.40, or even $1.55 to $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 under some near-term support levels at 94 to 90 cents per share. One can also buy shares of Biolase 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.

Viggle


Another under-$10 stock that's starting to trend within range of triggering a big breakout trade is Viggle  (VGGL) , which operates as a mobile and Web-based entertainment marketing platform for media companies, brands, and consumers in the U.S. This stock has been smashed by the sellers over the last six months, with shares down huge by 63.1%.

If you take a look at the chart for Viggle, you'll notice that this stock has been uptrending a bit over the last few weeks, with shares moving higher off its 52-week low of 73 cents per share to its recent high of $1.07 a share. During that uptrend, shares of Viggle have been making mostly higher lows and higher highs, which is bullish technical price action. This uptrend is coming after a massive collapse in the price of Viggle over the last six months, after shares plunged from over $4 a share to its new 52-week low of 73 cents per share. This stock has now started to rip higher back above its 20-day moving average of 93 cents per share and it's now quickly moving within range of triggering a big breakout trade.

Market players should now look for long-biased trades in Viggle if it manages to break out above some key near-term overhead resistance levels at $1 to $1.02 a share and then above more resistance at $1.07 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 556,472 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 its 50-day moving average of $1.18 to $1.25, or even $1.50 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 at 82 cents per share. One can also buy shares of Viggle 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.

Protalix BioTherapeutics


One under-$10 biopharmaceutical player that's starting to spike within range of triggering a major breakout trade is Protalix BioTherapeutics  (PLX) , which focuses on the development and commercialization of recombinant therapeutic proteins based on its proprietary ProCellEx protein expression system in Israel and internationally. This stock has been hit hard by the sellers over the last six months, with shares down sharply by 46.6%.

If you take a glance at the chart for Protalix BioTherapeutics, you'll notice that this stock has been downtrending badly over the last six months, with shares collapsing off its high of over $2.20 a share to its new 52-week low of 95 cents per share. During that downtrend, shares of Protalix BioTherapeutics have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock has now started to rebound off that 95 cents low with decent upside volume and it's quickly starting to trend within range of triggering a major breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in Protalix BioTherapeutics if it manages to break out above some near-term overhead resistance levels at $1.11 to its 20-day moving average of $1.14 a share and then above more key resistance at $1.20 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 290,515 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 $1.30 to its 50-day moving average of $1.34, or even $1.45 to $1.55 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 $1 a share or near its recent low of 95 cents per share. One can also buy shares of Protalix BioTherapeutics 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.

Enduro Royalty Trust


An under-$10 energy player that's starting to move within range of triggering a big breakout trade is Enduro Royalty Trust  (NDRO) , which focuses on acquiring and owning a net profits interest representing the right to receive an 80% of the net profits from the sale of oil and natural gas production from certain properties held by Enduro Resource Partners. This stock has been under heavy selling pressure over the last six months, with shares off big by 46.1%.

If you look at the chart for Enduro Royalty Trust, you'll notice that this stock has been consolidating and trending sideways over the last two months, with shares moving between $2.55 on the downside and $3.12 on the upside. Shares of Enduro Royalty Trust trended a bit higher on Wednesday back above both its 50-day and 20-day moving averages at $2.71 a share with strong upside volume flows. That high-volume move is now quickly pushing this stock within range of triggering a big breakout trade above the upper-end of its recent sideways trending chart pattern.

Market players should now look for long-biased trades in Enduro Royalty Trust if it manages to break out above some near-term overhead resistance levels at $2.80 to $2.90 a share and then above more resistance levels at $3 to $3.12 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 105,891 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 $3.36 to $3.60, or even its 200-day moving average of $3.83 to $4 a share.

Traders can look to buy Enduro Royalty Trust off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $2.64 to $2.55 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.

Ritter Pharmaceuticals


One final under-$10 stock that's starting to trend within range of triggering a near-term breakout trade is Ritter Pharmaceuticals  (RTTR) , which develops therapeutic products for treatment of inflammatory, gastrointestinal and metabolic diseases. This stock has been smacked lower by the sellers over the last six months, with shares down large by 51%.

If you take a glance at the chart for Ritter Pharmaceuticals, you'll notice that this stock has been uptrending a bit over the last few weeks, with shares moving higher off its all-time low of $2 a share to its recent high of $2.60 a share. During that uptrend, shares of Ritter Pharmaceuticals have been making mostly higher lows and higher highs, which is bullish technical price action. This short-term uptrend is coming after a large slide lower in this stock off its August high of $4.69 to that recent low of $2 a share. Shares of Ritter Pharmaceuticals have now started to challenge its 20-day moving average of $2.41 a share and it's beginning to move within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Ritter Pharmaceuticals if it manages to break out above some near-term overhead resistance levels at $2.60 to $2.63 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 67,794 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 50-day moving average of $2.84 to $3, or even $3.25 to $3.50 a share. Any high-volume move above $3.50 will then give this stock a chance to re-test its next major overhead resistance levels at $4.40 to $4.70 a share.

Traders can look to buy shares of Ritter Pharmaceuticals off weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support levels at $2.25 to $2.15 a share or even around its all-time low of $2 a share. One can also buy this stock 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.

Disclosure: This article is commentary by an independent contributor. At the time of publication, the author was long BIOL.

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