These 5 Stocks Under $10 Are About to Soar Higher

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 monster movers to the upside in the under-$10 complex from Wednesday, including Navios Maritime (NM) , which ripped higher by 51.2%; Stone Energy (SGY) , which spiked up by 41.2%; Bonanza Creek Energy (BCEI) , which soared by 27.6%; and Opexa Therapeutics (OPXA) , which surged by 27.5%. 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.

Staar Surgical

One under-$10 healthcare player that's starting to spike within range of triggering a big breakout trade is Staar Surgical  (STAA) , which, designs, develops, manufactures and sells implantable lenses for the eye, and delivery systems to deliver the lenses into the eye. This stock has been hit hard by the sellers over the last six months, with shares down sharply by 33.8%.

If you take a glance at the chart for Staar Surgical, you'll notice that this stock recently gapped-down sharply lower from $7.63 a share to around $5.50 a share with heavy downside volume flows. Following that move, this stock went on to print a new 52-week low of $4.98 a share. That said, shares of Staar Surgical have now started to rebound sharply higher off that $4.98 low, and it's quickly trending 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 Staar Surgical if it manages to break out above some near-term overhead resistance levels at $5.73 to around $6 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 146,473 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 20-day moving average of $6.44 to $7 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 around $5 a share. One can also buy shares of STAAR Surgical 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.

Catalyst Biosciences

Another under-$10 clinical-stage biopharmaceutical player that's starting to trend within range of triggering a near-term breakout trade is Catalyst Biosciences  (CBIO) , which focuses on engineering proteases as therapeutics for hemophilia, hemeostasis, complement-mediated diseases and other unmet medical needs. This stock has been destroyed by the sellers over the last six months, with shares off huge by 48.9%.

If you take a look at the chart for Catalyst Biosciences, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $1.30 to $1.31 a share. Following that potential bottom, this stock has now started to spike higher back above its 20-day moving average of $1.41 a share. That spike is now quickly pushing shares of Catalyst Biosciences 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 Catalyst Biosciences if it manages to break out above its 50-day moving average of $1.56 a share and then once it takes out more key resistance levels at $1.66 to $1.75 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 18,008 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 $1.90 to $2, or even $2.25 to $2.40 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right around those recent double bottom support levels. One can also buy shares of Catalyst Biosciences 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.

Epirus Biopharmaceuticals

One under-$10 biopharmaceutical player that's starting to trend within range of triggering a major breakout trade is Epirus Biopharmaceuticals  (EPRS) , which develops, manufactures, and commercializes biosimilar therapeutics worldwide. This stock has been annihilated by the sellers over the last six months, with shares collapsing by 86.8%.

If you take a glance at the chart for Epirus Biopharmaceuticals, you'll notice that this stock ripped sharply higher on Wednesday and broke out above some near-term overhead resistance at 62 cents per share with strong upside volume flows. Volume for that trading session registered over 954,000 shares, which is well above its three-month average volume of 191,289 shares. This high-volume spike to the upside is now quickly pushing shares of Epirus Biopharmaceuticals within range of triggering a much bigger breakout trade.

Traders should now look for long-biased trades in Epirus Biopharmaceuticals if it manages to break out above Wednesday's intraday high of 69 cents per 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 191,289 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 80 to 85 cents per share, or even $1 to around $1.20 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right below Wednesday's intraday low of 59 cents per share. One can also buy shares of Epirus Biopharmaceuticals 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.

Neuralstem

Another under-$10 clinical-stage biopharmaceutical player that's starting to spike within range of triggering a big breakout trade is Neuralstem  (CUR) , which  focuses on the research, development and commercialization of central nervous system therapies based on its proprietary human neuronal stem cells and stem-cell derived small molecule compounds. This stock has been smashed by the sellers over the last six months, with shares off huge by 70%.

If you look at the chart for Neuralstem, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at 30 to 31 cents per share. Following that potential bottom, shares of Neuralstem have now started to spike higher and this stock is 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 Neuralstem if it manages to break out above some near-term overhead resistance levels at 35 cents per share to its 20-day moving average of 37 cents per share and then above its gap-down-day high from May at around 38 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 355,149 shares. If that breakout develops soon, then this stock will set up to re-fill some of its previous gap-down-day zone that started near 60 cents per share.

Traders can look to buy Neuralstem off weakness to anticipate that breakout and simply use a stop that sits right around those recent double bottom support levels. One can also buy this stock off strength once it starts to trend back above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Weatherford International

One final under-$10 energy player that's starting to trend within range of triggering a big breakout trade is Weatherford International  (WFT) , which operates as a multinational oilfield service company worldwide. This stock has been under some heavy selling pressure over the last six months, with shares down sharply by 47.6%.

If you take a glance at the chart for Weatherford International, you'll notice that this stock has been uptrending over the last few weeks, since tagging its new 52-week low of $4.71 a share to its intraday high on Wednesday of $5.81 a share. During that uptrend, this stock has been making mostly higher lows and higher highs, which is bullish technical price action. That uptrend is now quickly pushing shares of Weatherford International within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Weatherford International if it manages to break out above Wednesday's intraday high of $5.81 a share to $6 a share and then above its 20-day moving average of $6.09 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 20.47 million 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 $6.98 a share. Any high-volume move above $6.98 will then give this stock a chance to re-fill some of its previous gap-down-day zone from May that started near $8.50 a share.

Traders can look to buy shares of Weatherford International off weakness to anticipate that breakout and simply use a stop that sits right below Wednesday's intraday low of $5.35 a share or near more key support at $5 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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