Every day on Wall Street, certain stocks trading for under $10 a share 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 EnerJex Resources (ENRJ) , which exploded higher by 93.1%; Majesco Entertainment (COOL) , which surged by 64%; Moko Social Media (MOKO) ,which ripped higher by 47.5%; and Auris Medical (EARS) , which soared by 31.1%. 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.

Pernix Therapeutics


One under-$10 specialty pharmaceutical player that's starting to trend within range of triggering a near-term breakout trade is Pernix Therapeutics  (PTX) , which develops, manufactures, markets and sells branded and generic pharmaceutical products. This stock has been smashed by the bears over the last six months, with shares down sharply by 50.4%.

If you take a glance at the chart for Pernix Therapeutics, you'll notice that this stock has been uptrending and counter-trending versus the overall market weakness, with shares moving higher from its recent low of $2.33 to its high of $3.01 a share. During that move, shares of Pernix Therapeutics have been making mostly higher lows and higher highs, which is bullish technical price action. This stock spiked up a bit on Wednesday right off its 20-day moving average of $2.73 a share, and that that spike 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 shares of Pernix Therapeutics if it manages to break out above some near-term overhead resistance levels at $3.01 to $3.07 a share and then above more resistance at $3.30 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 807,808 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 $3.77 to $4.24 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 $2.77 or near $2.50 a share. One can also buy shares of Pernix Therapeutics 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.

Connecture


Another under-$10 health care player that's starting to spike within range of triggering a big breakout trade is Connecture  (CNXR) , which operates as a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. This stock has been hit extremely hard by the bears over the last six months, with shares down big by 64.7%.

If you take a look at the chart for Connecture, you'll notice that this stock has been attempting to carve out a major bottom over the last month and change, with shares finding buying interest a number of times around $3.30 to $3.10 a share. Shares of Connecture ripped sharply higher on Wednesday back above its 20-day moving average of $3.52 a share with strong upside volume flows. Volume for the day registered over 117,000 shares, which is well above its three-month average action of 59,348 shares. This high-volume spike is now starting to push this stock 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 Connecture if it manages to break out above some near-term overhead resistance levels at $3.72 to $4.03 a share and then above its 50-day moving average of $4.09 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 59,348 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 $4.54 to $5, or even $5.50 to $6 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 $3.20 to its 52-week low of $3.11 a share. One can also buy shares of Connecture 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.

North Atlantic Drilling

One under-$10 energy player that's starting to rip within range of triggering a big breakout trade is North Atlantic Drilling  (NADL) , which operates as an offshore drilling services contractor in the North Atlantic region. This stock has destroyed by bears over the last six months, with shares off huge by 80.3%.

If you take a glance at the chart for North Atlantic Drilling, you'll notice that this stock broke below some key support levels on Wednesday at $2.12 to $2.10 a share briefly during intraday trading. That break didn't last long, since shares of North Atlantic Drilling rebounded sharply higher off its intraday low of $1.79 a share with strong upside volume flows. Volume for the day registered over 217,000 shares, which is well above its three-month average action of 70,377 shares. That high-volume 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 North Atlantic Drilling if it manages to break out above some near-term overhead resistance levels at $2.40 to $2.67 a share and then above its 20-day moving average of $2.77 to more resistance at $3 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 70,377 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 level at $3.90 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 intraday low on Wednesday of $1.79 a share. One can also buy shares of North Atlantic Drilling 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.

vTv Therapeutics


Another under-$10 biopharmaceutical player that's starting to move within range of triggering a big breakout trade is vTv Therapeutics  (VTVT - Get Report) , which engages in the discovery and development of orally administered small molecule drug candidates. This stock has been smacked by the sellers over the last six months, with shares off sharply by 34.4%.

If you look at the chart for vTv Therapeutics, you'll notice that this stock has been consolidating and trending sideways over the last three months, with shares moving between $6.07 on the downside and $8.22 on the upside. Shares of vTv Therapeutics spiked notably higher on Wednesday right off its 20-day moving average of $6.78 a share and back above its 50-day moving average of $6.91 a share. That 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 vTv Therapeutics if it manages to break out above some near-term overhead resistance levels at $7.70 to $7.75 a share and then more key resistance at $8 to $8.22 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 38,632 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 $9 to $10, or even $10.35 a share.

Traders can look to buy vTv Therapeutics off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $6.50 or at $6.07 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.

Etsy


One final under-$10 specialty retailer that's starting to trend within range of triggering a major breakout trade is Etsy  (ETSY - Get Report) , which operates online and offline marketplaces to buy and sell handmade items, vintage goods and craft supplies. This stock has been under heavy selling pressure over the last six months, with shares down by 34.3%.

If you take a glance at the chart for Etsy, you'll notice that this stock recently formed a major bottoming chart pattern, after shares found some buying interest at $8 a share multiple times and at $7.91 a share back in November. Shares of Etsy counter-trended higher on Wednesday versus the overall market weakness right above that key support at $8 a share with decent upside volume flows. That move is now quickly pushing this stock 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 Etsy if it manages to break out above some key near-term overhead resistance levels at its 20-day moving average of $8.91 to $9.10, and then above its 50-day moving average of $9.27 a share 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 1.03 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 level at $9.95 a share. Any high-volume move above $9.95 will then give this stock a chance to tag $11.25 to $11.50, or even $12.25 a share.

Traders can look to buy shares of Etsy off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $8 or at $7.91 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.