5 Stocks Under $10 Set to Soar

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 Acasti Pharma (ACST) , which exploded higher by 57.5%; Enphase Energy (ENPH) , which spiked big by 38.5%; China Finance Online (JRJC) ,which soared up by 38.1%; and PhotoMedex (PHMD) , which spiked large by 37.9%. 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.

Sientra


One under-$10 medical aesthetics player that's starting to spike within range of triggering big breakout trade is Sientra  (SIEN) , which develops and sells medical aesthetics products to plastic surgeons in the U.S. This stock has been smashed by the sellers over the last six months, with shares off huge by 78.8%.

If you take a glance at the chart for Sientra, you'll notice that this stock ripped sharply higher on Wednesday right off its 20-day moving average of $4.53 a share and back above its 50-day moving average of $4.77 a share with lighter-than-average volume. This move pushed shares of Sientra into breakout territory, since the stock cleared some near-term overhead resistance at $5 a share. This stock is now quickly moving within range of triggering another big breakout trade above some key near-term overhead resistance levels.

Market players should now look for long-biased trades in shares of Sientra if it manages to break out above some key near-term overhead resistance levels at $5.20 to $5.55 a share and then above more resistance levels at $5.75 to $6 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 673,053 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 $6.74 to $8, or even around $9.30 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 near-term support levels at $4.26 to $4 a share. One can also buy shares of Sientra 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.

Apollo Education Group


An under-$10 education and training services player that's starting to trend within range of triggering a big breakout trade is Apollo Education Group  (APOL) , which provides private education services in the U.S. and internationally. This stock has been smacked by the bears over the last six months, with shares off big by 52.1%.

If you take a look at the chart for Apollo Education Group, you'll notice that this stock has been consolidating and trending sideways over the last two months, with shares moving between $6.83 on the downside and $7.98 on the upside. Shares of Apollo Education Group ripped sharply higher on Wednesday right off its 20-day moving average of $7.32 a share with lighter-than-average volume. This spike 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 Apollo Education Group if it manages to break out above some near-term overhead resistance levels at $7.98 a share to its 50-day moving average of $8.11 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 2.09 million shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its gap-down-day high from October at $9.60 a share. Any high-volume move above $9.60 will then give this stock a chance to re-fill some of its previous gap-down-day zone that started at $11 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right below its 20-day moving average of $7.32 a share or just below more support at $7 a share. One can also buy shares of Apollo Education 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.

MaxPoint Interactive

One under-$10 application software player that's starting to spike within range of triggering a big breakout trade is MaxPoint Interactive  (MXPT) , which provides digital advertising services in the U.S. This stock has been destroyed by the bears over the last six months, with shares plunging by 83.9%.

If you take a glance at the chart for MaxPoint Interactive, you'll notice that this stock recently gapped-down sharply lower from around $5 a share to under $2.50 a share with heavy downside volume flows. Following that move, shares of MaxPoint Interactive went on to print a new all-time low of $1.32 a share. Since that $1.32 low, this stock has now started to rebound sharply higher with the stock moving back above its 20-day moving average of $1.55 a share on Wednesday. That rebound 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 MaxPoint Interactive if it manages to break out above Wednesday's intraday high of $1.65 a share and then above more key resistance at $1.75 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 131,761 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 $2 to $2.50 a share. Any high-volume move above those levels will then give this stock a chance to re-fill some of its previous gap-down-day zone from November that started near $5 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 near-term support at $1.45 a share or around that all-time low of $1.32 a share. One can also buy shares of MaxPoint Interactive 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.

Affimed


Another under-$10 biopharmaceutical player that's starting to trend within range of triggering a big breakout trade is Affimed  (AFMD) , which focuses on discovering and developing cancer immunotherapies. This stock has been under heavy selling pressure over the last six months, with shares off big by40.8%.

If you look at the chart for Affimed, you'll notice that this stock has spiked sharply higher on Wednesday right off both its 50-day moving average of $6.65 a share and its 20-day moving average of $6.77 a share with decent upside volume flows. This notable spike to the upside is now quickly pushing shares of Affimed within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Market players should now look for long-biased trades in Affimed if it manages to break out above some key near-term overhead resistance levels at $7.50 to $7.76 a share and then above more resistance at $8 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 315,218 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 $8.42 to its 200-day moving average of $9.44, or even $10.70 a share.

Traders can look to buy Affimed off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $6.59 to $6 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.

Exact Sciences


One final under-$10 stock that's starting to rip within range of triggering a major breakout trade is Exact Sciences  (EXAS) , which focuses on developing non-invasive colorectal cancer screening products. This stock has been annihilated by the sellers over the last six months, with shares plunging sharply by 66.6%.

If you take a glance at the chart for Exact Sciences, you'll notice that this spiked sharply higher on Wednesday back above both its 50-day moving average of $8.73 a share and its 20-day moving average of $8.80 a share with lighter-than-average volume. This stock also recently formed a double bottom chart pattern, after shares found some buying interest at $6.79 to $6.81 a share. This notable spike to the upside on Wednesday is now starting to push shares of Exact Sciences within range of triggering a major breakout above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in Exact Sciences if it manages to break out above Wednesday's intraday high of $8.89 to $9.25 a share and then above more key resistance levels at $9.73 to $10.09 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 3.89 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 $10.43 to its gap-down-day high from October at $12.45 a share. Any high-volume move above $12.45 will then give this stock a chance to re-fill some of its previous gap-down-day zone that started near $19 a share.

Traders can look to buy shares of Exact Sciences off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $7.78 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 no positions in the stocks mentioned.

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