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 monster movers to the upside in the under-$10 complex from Wednesday, including Magellan Petroleum (MPET) , which exploded higher by 108.3%; China Natural Resources (CHNR) , which ripped up 57.8%; Ampliphi Biosciences (APHB) , which spiked up 50.4%; and Sizmek (SZMK) , which trended up by 45.1%. 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.

Triangle Petroleum

One under-$10 independent energy player that's starting to spike within range of triggering a near-term breakout trade is Triangle Petroleum  (TPLM) , which engages in the exploration, development and production of oil and natural gas properties in the U.S. This stock has been smacked lower by the sellers over the last six months, with shares off large by 53.2%.

If you take a glance at the chart for Triangle Petroleum, you'll notice that this stock spiked sharply higher on Wednesday off some previous support at 17 cents per share with decent upside volume flows. This rip to the upside pushed this stock right into its 20-day moving average of 22 cents per share, before it closed just below that level at 21 cents per share. Shares of Triangle Petroleum are now quickly trending 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 shares of Triangle Petroleum if it manages to break out above some near-term overhead resistance levels at its 20-day moving average of 22 cents per share and then above more key resistance levels at 25 cents to its 50-day moving average of 27 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 3.55 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 at 41 to 50 cents, or even its 200-day moving average of 57 cents to 63 cents per 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 17 cents per share. One can also buy shares of Triangle Petroleum 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.

Scynexis

An under-$10 pharmaceutical player that's starting to trend within range of triggering a big breakout trade is Scynexis  (SCYX) , which develops and commercializes novel anti-infectives to address unmet therapeutic needs. This stock has been smashed lower by the sellers over the last six months, with shares dropping sharply by 56.8%.

If you take a look at the chart for Scynexis, you'll notice that this stock spiked sharply higher on Wednesday right above some near-term support at $1.85 a share with above-average volume. This stock has now potentially put in a double bottom chart pattern over the last month, with shares finding some buying interest at $1.74 to $1.85 a share. This high-volume spike to the upside is now quickly pushing shares of Scynexis 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 Scynexis if it manages to break out above its 20-day moving average of $2.09 a share and then once it takes out more near-term overhead resistance levels at $2.25 to $2.35 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 226,303 shares. If that breakout begins 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 $2.61 to $2.80, or even $3.25 to $3.75 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 Scynexis 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.

Conns

Another under-$10 stock that's starting to trend within range of triggering a big breakout trade is Conns  (CONN) , which operates as a specialty retailer of durable consumer goods and related services in the U.S. This stock has been destroyed by the bears over the last six months, with shares off sharply by 47.5%.

If you take a glance at the chart for Conns, you'll notice that this stock spiked sharply higher on Wednesday off its new 52-week low of $6.54 a share with decent upside volume flows. This spike pushed shares of Conns right into its 20-day moving average of $7.16 a share, before the stock closed just below that level at $7.03 a share. This jump to the upside is now quickly pushing shares of Conns within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Conns if it manages to break out above its 20-day moving average of $7.16 a share and then once it takes out more near-term overhead resistance levels at $7.37 to $7.70 a share with volume that hits near or above its three-month average action of 766,006 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 its 50-day moving average of $8.07 to $8.50, or even $8.75 to $9.24 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 new 52-week low of $6.54 a share. One can also buy shares of Conns 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.

Tokai Pharmaceuticals

Another under-$10 biopharmaceutical stock that's starting to trend within range of triggering a big breakout trade is Tokai Pharmaceuticals  (TKAI) , which focuses on developing and commercializing therapies for prostate cancer and other hormonally driven diseases. This stock has been hit hard by the sellers over the last six months, with shares collapsing by 81.4%.

If you look at the chart for Tokai Pharmaceuticals, you'll notice that this stock recently gapped-down sharply lower from $5.50 a share to $1.01 a share with massive downside volume flows. Shares of Tokai Pharmaceuticals spiked sharply higher on Wednesday right above that $1.01 low with strong upside volume flows. Volume for that trading session registered over 996,000 shares, which is well above its three-month average action of 493,734 shares. This high-volume spike to the upside is now quickly pushing this stock 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 Tokai Pharmaceuticals if it manages to break out above some near-term overhead resistance levels at $1.17 to $1.25 a share and then above more key resistance at $1.33 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 493,734 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 level at its gap-down-day high right around $1.75 a share. Any high-volume move above $1.75 will then give this stock a chance to re-fill some of its previous gap-down-day zone that started near $5.50 a share.

Traders can look to buy Tokai Pharmaceuticals off weakness to anticipate that breakout and simply use a stop that sits right below its new 52-week low of $1.01 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.

Rocket Fuel

One final under-$10 stock that's starting to spike within range of triggering a near-term breakout trade is Rocket Fuel  (FUEL) , which provides digital advertising solutions in the U.S., Canada, the U.K., Australia, France, Germany, Italy, Spain and Sweden. This stock has been under notable selling pressure over the last six months, with shares off sharply by 24.1%.

If you take a glance at the chart for Rocket Fuel, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest over the last month at $2.09 to $2.15 a share. This stock spiked sharply higher on Wednesday right above those recent support levels and back above both its 20-day moving average of $2.29 a share and its 50-day moving average of $2.33 a share with strong upside volume flows. This high-volume rip to the upside is now quickly pushing shares of Rocket Fuel within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Rocket Fuel if it manages to break out above some near-term overhead resistance levels at $2.40 to $2.42 a share and then above more resistance at $2.55 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 433,031 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 $2.77 to its 200-day moving average of $3.08, or even $3.36 to $3.65 a share.

Traders can look to buy shares of Rocket Fuel 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 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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