5 Breakout 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 big movers to the upside in the under-$10 complex from Wednesday, including American DG Energy (ADGE) , which exploded higher by 70.8%; Aehr Test Systems (AEHR) , which spiked by 36.5%; Cleantech Solutions (CLNT) , which soared by 34.9%; and Gol Linhas Aereas Inteligentes SA (GOL) , which ripped up by 27.2%. 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 to my subscribers 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.

Alliqua BioMedical

One under-$10 health care player that's starting to spike within range of triggering a big breakout trade is Alliqua BioMedical  (ALQA) , which provides wound care solutions in the United States and internationally. This stock has been destroyed by the sellers over the last six months, with shares down huge by 71.4%.

If you take a glance at the chart for Alliqua BioMedical, you'll notice that this stock spiked sharply higher on Wednesday right off its 50-day moving average of 87 cents per share with strong upside volume flows. Volume for that trading session registered over 220,000 shares, which is well above its three-month average action of 182,587 shares. This high-volume rip to the upside is now quickly pushing shares of Alliqua BioMedical 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 shares of Alliqua BioMedical if it manages to break out above some near-term overhead resistance levels at $1 to $1.11 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 182,587 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 $1.20 to $1.30, or even $1.40 to $1.55 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 50-day moving average of 87 cents per share or near its 20-day moving average of 81 cents per share. One can also buy shares of Alliqua BioMedical 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.

Caladrius Biosciences

Another under-$10 stock that's starting to trend within range of triggering a big breakout trade is Caladrius Biosciences  (CLBS) , which provides development and manufacturing services to the cell therapy industry in the U.S. This stock has been in play with the bulls over the last three months, with shares moving sharply higher by 41.7%.

If you take a look at the chart for Caladrius Biosciences, you'll notice that this stock spiked notably higher on Wednesday right above some near-term support at 66 cents per share and back above both its 20-day moving average of 70 cents per share and its 50-day moving average of 71 cents per share with strong upside volume flows. Volume for that trading session registered over 382,000 shares, which is well above its three-month average action of 190,529 shares. This high-volume spike to the upside is now quickly pushing shares of Caladrius Biosciences within range of triggering a big breakout trade.

Market players should now look for long-biased trades in Caladrius Biosciences if it manages to break out above Wednesday's intraday high of 75 cents per share and then above some near-term overhead resistance levels at 78 to 80 cents per 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 190,529 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 87 to 90 cents, or even $1 to its 200-day moving average of $1.09 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 66 to 63 cents per share. One can also buy shares of Caladrius Biosciences 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.

TearLab

Another under-$10 health care player that's starting to rip within range of triggering a near-term breakout trade is TearLab  (TEAR) , which operates as an in-vitro diagnostic company in the U.S. This stock has been slammed lower by the sellers over the last six months, with shares plunging lower by 60.1%.

If you take a glance at the chart for TearLab, you'll notice that this stock ripped sharply higher on Wednesday right off its 20-day moving average of 74 cents per share and off its 50-day moving average which is also 74 cents per share with monster upside volume flows. Volume for that trading session registered over 883,000 shares, which is well above its three-month average action of 140,723 shares. This high-volume spike to the upside is now quickly pushing shares of TearLab within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in TearLab if it manages to break out above some near-term overhead resistance levels at 87 to 89 cents per share and then above more resistance at 90 cents per 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 140,723 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 97 cents to $1.04, or even $1.20 to $1.30 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of 74 cents per share or near more support at 71 cents per share. One can also buy shares of TearLab 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.

Cancer Genetics

Another under-$10 health care player that's starting to move within range of triggering a near-term breakout trade is Cancer Genetics  (CGIX) , which develops, commercializes and provides molecular and biomarker-based tests and services in the U.S., India and China. This stock has been hit hard by the sellers over the last six months, with shares off sharply by 51.7%.

If you look at the chart for Cancer Genetics, you'll notice that this stock just recently formed a double bottom chart pattern, after shares found some buying interest over the last few weeks at $2.26 to $2.25 a share. Shares of Cancer Genetics ripped sharply higher on Wednesday off $2.25 a share with strong upside volume flows. Volume for that trading session registered over 141,000 shares, which is well above its three-month average action of 104,392 shares. This high-volume spike to the upside 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 Cancer Genetics if it manages to break out above some near-term overhead resistance levels at its 50-day moving average of $2.62 a share and its 20-day moving average of $2.66 a share and then above more key resistance at $2.80 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 104,392 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 $2.93 to $3.06, or even $3.35 to $3.40 a share.

Traders can look to buy Cancer Genetics off weakness to anticipate that breakout and simply use a stop that sits right below those recent double bottom support levels. 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.

Cardica

One final under-$10 stock that's starting to trend within range of triggering a near-term breakout trade is Cardica  (CRDC) , which designs, manufactures and markets automated anastomotic systems for use by cardiac surgeons to perform coronary bypass surgery in the U.S. and internationally. This stock has been red hot over the last six months, with shares soaring higher by 80.6%.

If you take a glance at the chart for Cardica, you'll notice that this stock ripped sharply higher on Wednesday back above both its 20-day moving average of $3.38 a share and its 50-day moving average of $3.48 a share with strong upside volume flows. Volume for that trading session registered over 94,000 shares, which is well above its three-month average action of 56,153 shares. This high-volume jump to the upside is now quickly pushing shares of Cardica within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Cardica if it manages to break out above some near-term overhead resistance levels at $3.82 to $3.88 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 56,153 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 $4.30 to $5, or even its 52-week high of $5.20 a share.

Traders can look to buy shares of Cardica off weakness to anticipate that breakout and simply use a stop that sits right below its 20-day moving average of $3.38 a share or near more key support at $3.05 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.

 

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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