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 monster movers to the upside in the under-$10 complex from Wednesday, including CHC Group (HELI) , which exploded higher by 46.2%; Fusion Telecommunications (FSNN) , which soared by 35.4%; Bebe Stores (BEBE) ,which ripped up by 32%; and Swift Energy (SFY) , which spiked sharply by 22.4%. 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.

Aratana Therapeutics


One under-$10 development-stage biopharmaceutical player that's starting to spike within range of triggering big breakout trade is Aratana Therapeutics  (PETX - Get Report) , which focuses on the licensing, development and commercialization of biopharmaceutical products for the companion animals worldwide. This stock has been crushed by the sellers over the last six months, with shares falling sharply lower by 59.6%.

If you take a glance at the chart for Aratana Therapeutics, you'll notice that this stock spiked notably higher over the last two trading sessions with strong upside volume flows. Volume on Wednesday registered over 870,000 shares, which is well above its three-month average action of 554,145 shares. This high-volume spike to the upside is now quickly pushing shares of Aratana Therapeutics within range of triggering a big breakout trade.

Market players should now look for long-biased trades in shares of Aratana Therapeutics if it manages to break out above its 20-day moving average of $5.94 a share and then once it clears more key near-term overhead resistance levels at $6.10 to $6.22 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 554,145 shares. If that breakout takes 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 $6.86 to $7.50 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right below Wednesday's intraday low of $5.48 or above its recent low of $5.20 a share. One can also buy shares of Aratana Therapeutics 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.

LSB Industries


Another under-$10 basic materials player that's starting to trend within range of triggering a big breakout trade is LSB Industries  (LXU - Get Report) , which manufactures and sells chemical products, water source and geothermal heat pumps, and air handling products. This stock has been destroyed by the bears over the last six months, with shares off huge by 84.4%.

If you take a look at the chart for LSB Industries, you'll notice that this has recently formed a double bottom chart pattern, after shares found some buying interest at $6.03 to $6.02 a share. Following that bottom, shares of LSB Industries have now started to spike higher and challenge its 20-day moving average of $6.55 a share with decent upside volume flows. Volume on Wednesday registered over 740,000 shares, which is well above its three-month average action of 621,080 shares. This spike is now quickly pushing shares of LSB Industries 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 LSB Industries if it manages to break out above some near-term overhead resistance levels at Wednesday's intraday high of $6.89 a share to more key resistance at $7.30 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 621,080 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 $8 to $9.70 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right below those recent double bottom support levels at $6.03 to $6.02 a share. One can also buy shares of LSB Industries 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.

Quotient Technology

One under-$10 sales promotions and events management player that's starting to trend within range of triggering a big breakout trade is Quotient Technology  (QUOT - Get Report) , which provides digital promotions and media platform that connect brands and retailers with consumers. This stock has been smacked hard by the sellers over the last six months, with shares off sharply by 45.3%.

If you take a glance at the chart for Quotient Technology, you'll notice that this stock has been uptrending over the last month and change, with shares moving higher from its low of $5.20 to its recent high of $7.35 a share. During that uptrend, shares of Quotient Technology have been making mostly higher lows and higher highs, which is bullish technical price action. This stock ripped sharply higher on Wednesday back above its 20-day moving average of $6.62 a share. That move is now quickly pushing this name 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 Quotient Technology if it manages to break out above its 50-day moving average of $7.13 a share and then above more key resistance at $7.35 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 520,058 shares. If that breakout gets started soon, then this stock will set up to re-fill some of its previous gap-down-day zone from October that started at $8.50 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 levels at $6.25 to $6.07 a share. One can also buy shares of Quotient Technology 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.

AgroFresh Solutions

Another under-$10 technology player that's starting to move within range of triggering a big breakout trade is AgroFresh Solutions  (AGFS - Get Report) , which provides data-driven specialty chemical solutions. This stock has been under heavy selling pressure over the last six months, with shares off large by 44.2%.

If you look at the chart for AgroFresh Solutions, you'll notice that this stock has been downtrending badly over the last six months, with shares falling sharply from over $13 a share to its recent low of $4.61 a share. During that downtrend, shares of AgroFresh Solutions have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock has now started to spike sharply higher off that $4.61 low and it's now quickly moving within range of triggering a big breakout trade above some near-term resistance levels.

Market players should now look for long-biased trades in AgroFresh Solutions if it manages to break out above its 20-day moving average of $6.16 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 247,731 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 $6.73 to its 50-day moving average of $7.14, or even $7.50 to $8 a share.

Traders can look to buy AgroFresh Solutions off weakness to anticipate that breakout and simply use a stop that sits right below some recent double bottom support levels at $5.65 to $5.62 a share. One can also buy this stock off strength once it starts to bust above its 20-day moving average of $6.16 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

TerraForm Global


One final under-$10 alternative energy player that's starting to trend within range of triggering a near-term breakout trade is TerraForm Global  (GLBL) , which owns and operates renewable energy generation assets worldwide. This stock has been slammed by the bears over the last six months, with shares plunging sharply lower by 68.3%.

If you take a glance at the chart for TerraForm Global, you'll notice that this stock has recently formed a major bottoming chart pattern, after shares found some buying interest over the last few weeks at $3.85, $3.95 and $3.71 a share. Following that bottom, this stock has now started to spike sharply higher off that $3.71 low with strong upside volume flows. Volume on Wednesday registered over 2.01 million shares, which is well above its three-month average action of 1.29 million shares. That high-volume spike is now quickly pushing this stock within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in TerraForm Global if it manages to break out above Wednesday's intraday high of $4.70 a share to its 20-day moving average of $4.94 a share and then above more key resistance at $5 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 1.29 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 $5.50 to its 50-day moving average of $6.31, or even $6.71 a share.

Traders can look to buy shares of TerraForm Global off weakness to anticipate that breakout and simply use a stop that sits right below Wednesday's intraday low of $4.14 a share or around $4 a share. One can also buy this stock off strength once it starts to smash 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.