These 5 Stocks Under $10 Are Set 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 large movers to the upside in the under-$10 complex from Friday, including Biostar Pharmaceuticals (BSPM) , which soared by 30.5%; Skullcandy (SKUL) , which spiked by 23%; Vista Gold (VGZ) , which jumped 18%; and Kingold Jewelry (KGJI) , which surged by 16.2%. 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.

Fibrocell Science

One under-$10 autologous cell and gene therapy player that's starting to trend within range of triggering a major 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 destroyed by the sellers over the last six months, with shares collapsing by 78.2%.

If you take a glance at the chart for Fibrocell Science, you'll notice that this stock displayed some relative strength on Friday during the market chaos, after shares spiked 5.8% higher with monster upside volume flows. Volume for that trading session registered over 2.50 million shares, which is well above its three-month average action of 263,377 shares. This high-volume rip to the upside is now quickly pushing shares of Fibrocell Science 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 Fibrocell Science if it manages to break out above Friday's intraday high of $1.06 a share and then above more near-term resistance at $1.07 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 263,377 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 $1.25 a share to its gap-down-day high from earlier this month at $1.34 a share. Any high-volume move above $1.34 will then give this stock a chance to re-fill some of its previous gap-down-day zone that started near $2 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right around its new 52-week low of 91 cents per share. One can also buy shares of Fibrocell Science off strength once it starts trend above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Amedica

Another under-$10 stock that's starting to spike within range of triggering a big breakout trade is Amedica  (AMDA) , which develops, manufactures and sells a range of medical devices based on its silicon nitride ceramic technology platform in the U.S., Europe and South America. This stock has been under modest selling pressure over the last six months, with shares off by 7.1%.

If you take a look at the chart for Amedica, you'll notice that this stock spike notably higher on Friday back above its 20-day moving average of $1.35 a share and briefly above its 50-day moving average of $1.45 a share with above-average volume. Volume for that trading session registered over 904,000 shares, which is well above its three-month average action 625,850 a shares. This high-volume bump to the upside is now starting to push shares of Amedica 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 Amedica if it manages to break out above Friday's intraday high of $1.52 a share and then above more key resistance levels at $1.56 to $1.67 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 625,850 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 $1.80 to $2.20, or even its 200-day moving average of $2.45 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right around Friday's intraday low of $1.28 a share or near more key support at $1.22 a share. One can also buy shares of Amedica 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.

Corindus Vascular Robotics

Another stock that's starting to trend within range of triggering a big breakout trade is Corindus Vascular Robotics  (CVRS) , which designs, manufactures and sells precision vascular robotic-assisted systems for use in interventional vascular procedures. This stock has been in favor with the bulls over the last three months, with shares soaring higher by 47.3%.

If you take a glance at the chart for Corindus Vascular Robotics, you'll notice that this stock has been uptrending strong over the last three months, with shares ripping higher off its new 52-week low of 73 cents per share to its recent high of $1.71 a share. During that uptrend, shares of Corindus Vascular Robotics have been making mostly higher lows and higher highs, which is bullish technical price action. This strong 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 Corindus Vascular Robotics if it manages to break out above Friday's intraday high of $1.56 a share and then above more key resistance at $1.71 a share with volume that hits near or above its three-month average action of 212,028 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 around $2 to its 200-day moving average of $2.15 a share, or even $2.50 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop around its 20-day moving average of $1.33 a share or near more key support at $1.24 a share. One can also buy shares of Corindus Vascular Robotics 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.

Big 5 Sporting Goods

An under-$10 sporting goods retailer that's starting to spike within range of triggering a near-term breakout trade is Big 5 Sporting Goods  (BGFV) , which offers a range of products in a sporting goods store format that averages approximately 11,000 square feet. This stock has been under some selling pressure over the last three months, with shares falling notably by 14.2%.

If you look at the chart for Big 5 Sporting Goods, you'll notice that this stock trended modestly higher on Friday in the midst of a large market selloff, after shares moved back above its 20-day moving average of $8.77 a share with above-average volume. Volume for that trading session registered over 329,000 shares, which is well above its three-month average action of 240,938 shares. This high-volume bump to the upside is now quickly pushing shares of Big 5 Sporting Goods 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 Big 5 Sporting Goods if it manages to break out above its 50-day moving average of $9.51 a share and then once it clears more key resistance levels at $9.75 to $10 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 240,938 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 200-day moving average of $10.27 a share to its gap-down-day high from May near $10.75 a share. Any high-volume move above $10.75 will then give this stock a chance to re-fill some of its previous gap-down-day zone that started near $12.50 a share.

Traders can look to buy Big 5 Sporting Goods off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $8.60 to $8.43 a share or near its new 52-week low of $8.15 a share. One can also buy this stock 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.

Orexigen Therapeutics

One final under-$10 biopharmaceutical player that's starting to trend within range of triggering a big breakout trade is Orexigen Therapeutics  (OREX) , which focuses on the development of pharmaceutical products. This stock has been destroyed by the sellers over the last six months, with shares falling sharply by 75.4%.

If you take a glance at the chart for Orexigen Therapeutics, you'll notice that this stock has been uptrending over the last two months, with shares moving higher off its new 52-week low of 35 cents per share to its recent high of 65 cents per share. During that uptrend, this stock has been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of Orexigen Therapeutics 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 Orexigen Therapeutics if it manages to break out above Friday's intraday high of 47 cents per share to some more key resistance levels at 50 to 52 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 2.47 million 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 60 cents to 65 cents per share, or even 83 cents to $1 a share.

Traders can look to buy shares of Orexigen Therapeutics off weakness to anticipate that breakout and simply use a stop that sits right around some near-term support levels at 44 cents to 39 cents per 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.

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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