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 large movers to the upside in the under-$10 complex from Wednesday, including Repros Therapeutics (RPRX) , which exploded higher by 175.4%; Foresight Energy (FELP) , which ripped up 45.5%; Capstone Turbine (CPST) , which surged by 24.3%; and EMCORE (EMKR) , which jumped up 19.6%. 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. These are also the exact type of stocks that I love to trade and alert in real-time. 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.

Oncothyreon

One under-$10 clinical-stage biopharmaceutical player that's starting to trend within range of triggering a major breakout trade is Oncothyreon  (ONTY) , which engages in the research and development of therapeutic products for the treatment of cancer. This stock has been smacked lower by the sellers over the last six months, with shares down big by 54.2%.

If you take a glance at the chart for Oncothyreon, you'll notice that this stock spiked notably higher on Wednesday right off its 50-day moving average of $1.13 a share and right into its 20-day moving average of $1.19 a share with strong upside volume flows. Volume for that trading session registered over 1.20 million shares, which is well above its three-month average action of 885,903 shares. This high-volume jump higher is now quickly pushing shares of Oncothyreon within range of triggering a major breakout trade above some key near-term overhead resistance levels.

Market players should now look for long-biased trades in shares of Oncothyreon if it manages to break out above its 20-day moving average of $1.19 a share and then above more key resistance levels at $1.28 to around $1.30 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 885,903 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 $1.40 to $1.53, or even $1.58 to $1.78 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 key near-term support levels at $1.12 a share or at $1.07 a share. One can also buy shares of Oncothyreon 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.

Basic Energy Services

Another under-$10 energy player that's starting to trend within range of triggering a near-term breakout trade is Basic Energy Services  (BAS) , which provides well site services to oil and natural gas drilling and producing companies in the U.S. This stock has been in play with the bulls over the last three months, with shares sharply higher by 40.4%.

If you take a look at the chart for Basic Energy Services, you'll notice that this stock spiked notably higher on Wednesday back above its 50-day moving average of $2.39 a share with strong upside volume flows. Volume for that trading session registered over 1.76 million shares, which is above its three-month average action of 1.45 million shares. This high-volume rip to the upside is now quickly pushing shares of Basic Energy Services 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 Basic Energy Services if it manages to break out above some near-term overhead resistance levels at $2.59 a share to its 20-day moving average of $2.70 a share and then above more resistance at $2.84 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 1.45 million shares. If that breakout kicks off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $3.50 to its 200-day moving average of $3.75 a share, or even $4 to $4.25 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 key near-term support at $2.16 a share. One can also buy shares of Basic Energy Services 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.

Fibrocell Science

One under-$10 autologous cell and gene therapy player that's starting to spike within range of triggering a big breakout trade is Fibrocell Science  (FCSC) , which focuses on discovering and developing therapies for diseases affecting the skin, connective tissues, and joints in the U.S. This stock has been under some notable selling pressure over the last six months, with shares trending lower by 39.4%.

If you take a glance at the chart for Fibrocell Science, you'll notice that this stock recently formed a major bottoming chart pattern, after shares found some buying interest at $2.25 to $2.19 a share. Following that potential bottom, shares of Fibrocell Science ripped sharply higher on Wednesday back above both its 50-day moving average of $2.42 a share and its 20-day moving average of $2.46 a share with decent upside volume. This move 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 Fibrocell Science if it manages to break out above some near-term overhead resistance levels at $2.66 to $2.75 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 156,795 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 $3.05 to $3.42, or even $3.75 to $4 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 $2.19 to its new 52-week low of $2.04 a share. One can also buy shares of Fibrocell Science 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.

Avalanche Biotechnologies

Another under-$10 gene therapy player that's starting to move within range of triggering a big breakout trade is Avalanche Biotechnologies  (AAVL) , which engages in discovering and developing novel medicines that offer therapeutic benefit to patients suffering from chronic or debilitating disease. This stock has been hit hard by the bears over the last six months, with shares down by 31.7%.

If you look at the chart for Avalanche Biotechnologies, you'll notice that this stock has been consolidating and trending sideways over the last two months and change, with shares moving between $4.66 on the downside and $5.85 on the upside. Shares of Avalanche Biotechnologies spiked notably higher on Wednesday right off its 50-day moving average of $5.12 a share and back above its 20-day moving average of $5.18 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 Avalanche Biotechnologies if it manages to break out above some near-term overhead resistance levels at $5.50 to $5.65 a share and then above more resistance at $5.70 to $5.85 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 402,160 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 $6 to $6.60, or even $7 to $8 a share.

Traders can look to buy Avalanche Biotechnologies off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $5 a share or at $4.66 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.

Vitae Pharmaceuticals

One final under-$10 biotechnology player that's starting to spike within range of triggering a major breakout trade is Vitae Pharmaceuticals  (VTAE) , which focuses on discovering and developing novel and small molecule drugs for diseases with unmet medical needs in the U.S. This stock has been smashed lower by the bears over the last six months, with shares off sharply by 38.5%.

If you take a glance at the chart for Vitae Pharmaceuticals, you'll notice that this stock has been uptrending over the last month or so, with shares moving higher from its low of $5.70 a share to its recent high of $7.75 a share. During that uptrend, this stock has been making mostly higher lows and higher highs, which is bullish technical price action. Shares of Vitae Pharmaceuticals spiked notably higher on Wednesday back above its 50-day moving average of $7.40 a share. That spike 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 Vitae Pharmaceuticals if it manages to break out above some near-term overhead resistance levels at $7.75 to $7.80 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 1.05 million shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its next major overhead resistance level at $8.38 a share. Any high-volume move above $8.38 will then give this stock a chance to re-fill some of its previous gap-down-day zone from March that started near $11 a share.

Traders can look to buy shares of Vitae Pharmaceuticals off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $7 a share or at its 20-day moving average of $6.77 a share. One can also buy this stock 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.

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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