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 Great Basin Scientific (GBSN) , which exploded higher by 92%; China Natural Resources (CHNR) , which ripped up by 26.4%; Code Rebel (CDRB) ,which surged by 26.4%; and Pernix Therapeutics (PTX) , which soared by 20%. 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.

Marinus Pharmaceuticals

One under-$10 clinical stage biopharmaceutical player that's starting to trend within range of triggering a near-term breakout trade is Marinus Pharmaceuticals  (MRNS) , which focuses on developing and commercializing neuropsychiatric therapeutics. This stock has been smashed by the sellers over the last six months, with shares off sharply by 62%.

If you take a glance at the chart for Marinus Pharmaceuticals, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $4 a share. Following that potential bottom, this stock has now started to trend higher and move back above its 20-day moving average of $4.81 a share. That move is now starting to push shares of Marinus Pharmaceuticals within range of triggering a near-term breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades in shares of Marinus Pharmaceuticals if it manages to break out above some near-term overhead resistance levels at $5.30 to around $5.50 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 91,192 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 $6 to $6.50, or even $7 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits just below some near-term support at $4.30 a share or around its new 52-week low of $4 a share. One can also buy shares of Marinus Pharmaceuticals 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.

Avinger

Another under-$10 commercial-stage medical device player that's starting to move within range of triggering a near-term breakout trade is Avinger  (AVGR) , which designs, manufactures and sells image-guided and catheter-based systems used by physicians to treat patients with peripheral arterial disease in the U.S. and Europe. This stock has been smacked lower by the sellers over the last six months, with shares off big 38.1%%.

If you take a look at the chart for Avinger, you'll notice that this stock has been downtrending badly over the last three months and change, with shares collapsing off its high of $25.11 a share to its new 52-week low of $8.25 a share. During that downtrend, this stock has been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of Avinger have now started to spike higher off that $8.25 low on Wednesday with decent upside volume flows. That spike is now quickly pushing this stock within range of triggering a near-term breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades in Avinger if it manages to break out above Wednesday's intraday high of $9.05 a share and then above more resistance levels at $9.21 to just over $9.50 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 132,867 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 $10.50 to its 20-day moving average of $11.84 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 new 52-week low of $8.25 a share. One can also buy shares of Avinger 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.

Net 1 Ueps Technologies

One under-$10 business services player that's starting to move within range of triggering a near-term breakout trade is Net 1 Ueps Technologies  (UEPS) , which provides payment solutions and transaction processing services for various industries in South Africa, South Korea, and internationally. This stock has been under heavy selling pressure over the last six months, with shares down large by 49.7%.

If you take a glance at the chart for Net 1 Ueps Technologies, you'll notice that this stock has been downtrending badly over the last six months, with shares collapsing lower from over $18 a share to its new 52-week low of $8.44 a share. During that downtrend, this stock has been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of Net 1 Ueps Technologies trended higher on Wednesday right above that $8.44 low with above-average volume. Volume for that trading session registered over 600,000 shares, which is well above its three-month average action of 442,031 shares. That high-volume rip higher is now quickly pushing this stock within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Net 1 Ueps Technologies if it manages to break out above some near-term overhead resistance levels at $9 to its 20-day moving average of $9.21 a share and then above $9.50 to $9.70 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 442,031 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 its 50-day moving average of $9.94 to $10.25, or even $10.50 to $11 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits below its new 52-week low of $8.44 a share. One can also buy shares of Net 1 Ueps Technologies 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.

Imprimis Pharmaceuticals

Another under-$10 pharmaceutical player that's starting to move within range of triggering a near-term breakout trade is Imprimis Pharmaceuticals  (IMMY) , which focuses on developing and commercializing proprietary compounded drug therapies to physicians and patients in the U.S. This stock has been hit hard by the sellers over the last six months, with shares down sharply by 40.7%.

If you look at the chart for Imprimis Pharmaceuticals, you'll notice that this stock has been uptrending a bit over the last few weeks, with shares moving higher off its new 52-week low of $3.72 a share to its recent high of $4.45 a share. During that move, this stock has been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of Imprimis Pharmaceuticals within range of triggering a near-term breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades in Imprimis Pharmaceuticals if it manages to break out above some near-term overhead resistance levels at $4.45 to $4.50 a share and then above its 50-day moving average of $4.74 a share to $4.90 a share with volume that hits near or above its three-month average action of 35,977 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 $5.25 to $5.75, or even $6 a share.

Traders can look to buy Imprimis Pharmaceuticals off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $3.95 or its new 52-week low of $3.72 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.

Ideal Power


One final under-$10 energy player that's starting to spike within range of triggering a big breakout trade is Ideal Power  (IPWR) , which develops power conversion solutions with a focus on commercial and industrial grid storage, combined solar and storage, and microgrid applications. This stock has been hit hard by the sellers over the last six months, with shares down off large by 37.3%.

If you take a glance at the chart for Ideal Power, you'll notice that this stock has been downtrending badly over the last five months, with shares falling sharply from its high of $9.65 a share to its new 52-week low of $3.90 a share. During that downtrend, shares of Ideal Power have been making mostly lower highs and lower lows, which is bearish technical price action. That said, this stock bounced sharply higher on Wednesday right above that $3.90 low with strong upside volume. Volume for that trading session registered over 140,000 shares, which is well above its three-month average action of 22.710 shares. This high-volume spike to the upside is now quickly pushing this stock within range of triggering a big breakout trade.

Traders should now look for long-biased trades in Ideal Power if it manages to break out above some near-term overhead resistance levels at $4.39 to $4.50 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 22,710 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 $4.98 to $5.14, or even around $5.50 a share.

Traders can look to buy shares of Ideal Power off weakness to anticipate that breakout and simply use a stop that sits right below its new 52-week low of $3.90 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.

Disclosure: 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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