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 General Steel (GSI) , which exploded higher by 72.2%; Lilis Energy (LLEX - Get Report) , which soared by 48.5%; Pedevco (PED - Get Report) ,which ripped up by 39.4%; and Mines Management (MGN) , which jumped higher by 36.6%. 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.

Vascular Biogenics


One under-$10 clinical-stage biopharmaceutical player that's starting to spike within range of triggering big breakout trade is Vascular Biogenics  (VBLT - Get Report) , which focuses on the discovery, development and commercialization of treatments for cancer and immune-inflammatory diseases in Israel. This stock has been smacked by the bears over the last three months, with shares off large by 30.2%.

If you take a glance at the chart for Vascular Biogenics, you'll notice that this stock has been downtrending badly over the last three months and change, with shares collapsing off its high of $12.25 to its recent low of $4.66 a share. During that downtrend, shares of Vascular Biogenics have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock has now started to spike back above its 20-day moving average of $5.07 a share, and it's quickly moving 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 Vascular Biogenics if it manages to break out above some key near-term overhead resistance levels at $5.37 to $5.50 a share and then above both its 50-day moving average of $5.67 and its 200-day moving average of $5.87 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 193,803 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 $6.04 to $6.70, or even $7 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 around its recent low of $4.66 a share. One can also buy shares of Vascular Biogenics 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.

Genesis Healthcare


Another under-$10 health care player that's starting to spike within range of triggering a near-term breakout trade is Genesis Healthcare  (GEN - Get Report) , which provides post-acute care services through a network of skilled nursing centers and assisted/senior living communities in the U.S. This stock has been hit hard by the sellers over the last six months, with shares down large by 44.3%.

If you take a look at the chart for Genesis Healthcare, you'll notice that this stock has been downtrending badly over the last five months, with shares falling sharply off its high of $8.06 a share to its new 52-week low of $3.38 a share. During that downtrend, shares of Genesis Healthcare have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock ripped sharply higher on Wednesday with strong upside volume flows. Volume for that session registered over 380,000 shares, which is well above its three-month average action of 177,865 a shares. This high-volume rip off its recent low is now quickly pushing this stock within range of triggering a near-term breakout trade.

Market players should now look for long-biased trades in Genesis Healthcare if it manages to break out above some near-term overhead resistance levels at $3.81 to $4 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 177,865 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 20-day moving average of $4.16 to its 50-day moving average of $4.57, or even $5 to $5.50 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right around its new 52-week low of $3.38 a share. One can also buy shares of Genesis Healthcare 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.

ProQR Therapeutics

One under-$10 biopharmaceutical player that's starting to spike within range of triggering a near-term breakout trade is ProQR Therapeutics  (PRQR - Get Report) , which engages in the discovery and development of RNA-based therapeutics for the treatment of genetic disorders. This stock has been slammed hard by the bears over the last six months, with shares off sharply by 52.4%.

If you take a glance at the chart for ProQR Therapeutics, you'll notice that this stock has been downtrending badly over the last three months, with shares collapsing off its high of $20.05 to its new 52-week low of $6.95 a share. During that massive downtrend, shares of ProQR Therapeutics have been consistently making lower highs and lower lows, which is bearish technical price action. This stock also recently gapped-down sharply lower from over $13 to under $9 a share with massive downside volume. All that said, this stock has now started to rebound off that $6.95 low and it's quickly moving within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in ProQR Therapeutics if it manages to break out above some near-term overhead resistance at $8.12 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 74,227 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 around $9 to $9.43, or even $11 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 $7.12 to its new 52-week low of $6.95 a share. One can also buy shares of ProQR Therapeutics 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.

Hi-Crush Partners


An under-$10 basic materials player that's starting to trend within range of triggering a big breakout trade is Hi-Crush Partners  (HCLP) , which produces and supplies monocrystalline sand in the U.S. This stock has been destroyed by the sellers over the last six months, with shares off huge by 81.3%.

If you look at the chart for Hi-Crush Partners, you'll notice that this stock has been attempting to carve out a major bottoming chart pattern over the last two months, with shares finding some buying interest at $5.05, $5.20 and $5.30 a share. This potential bottom is coming after shares of Hi-Crush Partners collapsed off its July high of $26.40 a share to its new 52-week low of $5.05 a share. This stock is now starting to bounce off $5.30 a share, and it's quickly moving 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 Hi-Crush Partners if it manages to break out above its 20-day moving average of $6.05 a share to some more resistance at $6.11 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 601,771 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 its 50-day moving average of $6.58 to $6.85, or even $8 to $8.40 a share.

Traders can look to buy Hi-Crush Partners off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $5.30 to $5.20 a share or even near its new 52-week low of $5.05 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.

Foamix Pharmaceuticals


One final under-$10 clinical-stage specialty pharmaceuticals player that's starting to spike within range of triggering a big breakout trade is Foamix Pharmaceuticals  (FOMX - Get Report) , which develops and commercializes foam-based formulations for the treatment of acne, impetigo, and other skin conditions in the U.S., Germany, and Israel. This stock has been under some selling pressure over the last six months, with shares off by 20%.

If you take a glance at the chart for Foamix Pharmaceuticals, you'll notice that this stock has been consolidating and trending sideways over the last month or so, with shares moving between $7.60 on the downside and $8.54 on the upside. Shares of Foamix Pharmaceuticals spiked a bit higher on Wednesday back above its 20-day moving average of $8.11 a share. This spike is now starting to push this stock within range of triggering a big breakout trade above the upper-end of its recent sideways trending chart pattern.

Traders should now look for long-biased trades in Foamix Pharmaceuticals if it manages to break out above some key near-term overhead resistance levels at $8.54 to $8.60 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 258,803 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 $9.50 to its 200-day moving average of $9.58, or even $10.25 to around $11 a share.

Traders can look to buy shares of Foamix Pharmaceuticals off weakness to anticipate that breakout and simply use a stop that sits right around its 50-day moving average of $7.55 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.

 

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.