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 monster movers to the upside in the under-$10 complex from Wednesday, including Biostar Pharmaceuticals (BSPM) , which exploded higher by 202%; Gevo (GEVO) , which ripped up by 59%; New Concept Energy (GBR) , which soared by 55%; and Orexigen Therapeutics (OREX) , which surged by 51.5%. 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.

Moleculin Biotech

One under-$10 clinical-stage pharmaceutical player that's starting to spike within range of triggering a big breakout trade is recent IPO Moleculin Biotech  (MBRX) , which focuses on the development of anti-cancer drug candidates. This stock just came public last week and hit an opening day high of $9.50 a share.

If you take a glance at the chart for Moleculin Biotech, you'll notice that this stock bounced up on Wednesday after trading close to its low of $7.60 a share with decent upside volume flows. That bounce is now quickly pushing shares of Moleculin Biotech 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 Moleculin Biotech if it manages to break out above Wednesday's intraday high of $8.60 a share and then above more key near-term overhead resistance levels at $8.90 to $9 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 253,140 shares. If that breakout develops soon, then this stock will set up to re-test or possibly take out its next major overhead resistance level at its all-time high of $9.58 a share. Any high-volume move above $9.58 will then give this stock a chance to trend well north of $10 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 all-time low of $7.60 a share. One can also buy shares of Moleculin Biotech 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.

Pacific Biosciences of California

Another under-$10 biopharmaceutical player that's starting to trend within range of triggering a major breakout trade is Pacific Biosciences of California  (PACB) , which designs, develops and manufactures sequencing systems to resolve genetically complex problems. This stock has been in play with bulls over the last three months, with shares moving higher by 13%.

If you take a look at the chart for Pacific Biosciences of California, you'll notice that this stock has been uptrending over the last three months, with shares moving higher off its low of $7.50 a share to its recent high of $10.75 a share. During that uptrend, shares of Pacific Biosciences of California have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed this stock 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 Pacific Biosciences of California if it manages to break out above Wednesday's intraday high of $9.77 a share and then above more key overhead resistance at $10.13 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 1.59 million 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 $10.57 to $10.75, or even $13 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 $9.27 a share or around more support at $9 a share. One can also buy shares of Pacific Biosciences of California 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.

CPI Card Group

One under-$10 financial player that's starting to spike within range of triggering a big breakout trade is CPI Card Group  (PMTS) , which engages in the design, production, data personalization, packaging and fulfillment of financial payment cards. This stock has been smashed lower by the bears over the last six months, with shares off big by 53.4%.

If you take a glance at the chart for CPI Card Group, you'll notice that this stock has been uptrending over the last month and change, with shares moving higher off its low of $3.38 a share to its intraday high on Wednesday of $4.70 a share. During that uptrend, shares of CPI Card Group have been consistently making higher lows and higher highs, which is bullish technical price action. That uptrend has now pushed 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 CPI Card Group if it manages to break out above some near-term overhead resistance levels at Wednesday's intraday high of $4.70 a share and then above its gap-down-day high from May around $5 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 266,997 shares. If that breakout takes hold soon, then this stock will set up to re-fill some of its previous gap-down-day zone from May that started near $8 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 20-day moving average of $4.27 a share or around more key near-term support at $4 a share. One can also buy shares of CPI Card Group 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.

Pernix Therapeutics

Another under-$10 specialty pharmaceutical player that's starting to spike within range of triggering a big breakout trade is Pernix Therapeutics  (PTX) , which develops, manufactures, markets and sells pharmaceutical products. This stock has been destroyed by the sellers over the last six months, with shares off sharply by 80%.

If you look at the chart for Pernix Therapeutics, you'll notice that this stock recently double bottomed back in May, after shares found some buying interest at 39 cents per share. Following that bottom, this stock has started to uptrend and move back above its 20-day moving average of 46 cents per share with strong upside volume flows. That uptrend is now quickly pushing shares of Pernix Therapeutics 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 Pernix Therapeutics if it manages to break out above some near-term overhead resistance levels at Wednesday's intraday high of 56 cents per share and then above more key resistance levels at 67 to 70 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 4.47 million shares. If that breakout fires off soon, then this stock will set up to re-fill some of its previous gap-down-day zone from May that stared near $1.20 a share.

Traders can look to buy Pernix Therapeutics off weakness to anticipate that breakout and simply use a stop that sits right around its 20-day moving average of 46 cents per 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.

Career Education

One final under-$10 education and training services player that's starting to trend within range of triggering a big breakout trade is Career Education  (CECO) , which operates colleges, institutions and universities that provide education to student population in various career-oriented disciplines through online, on-ground, and hybrid learning program offerings in the U.S. This stock has been red hot over the last six months, with shares soaring higher by 60.8%.

If you take a glance at the chart for Career Education, you'll notice that this stock ripped notably higher on Wednesday right off its 20-day moving average of $5.74 a share with lighter-than-average volume. This jump to the upside is now quickly pushing shares of Career Education 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 Career Education if it manages to break out above some near-term overhead resistance levels at $5.95 to $6.02 a share and then above its 52-week high of $6.11 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 514,830 shares. If that breakout triggers soon, then this stock will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $6.30 to $7.10, or even $7.75 to $8 a share.

Traders can look to buy shares of Career Education off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $5.30 a share or around more key near-term support at $5 a share. One can also buy this stock off strength once it starts to move back above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

-- Written by Roberto Pedone in Delafield, Wis.

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This article is commentary by an independent contributor. At the time of publication, author held a long position in MBRX.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

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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