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 big movers to the upside in the under-$10 complex from Wednesday, including Roka Bioscience (ROKA) , which soared by 28.2%; Fifth Street Asset Management (FSAM) , which ripped up by 18.3%; MannKind (MNKD) , which ripped up by 15.1%; and Netlist (NLST) , which spiked by 15%. 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.

Xplore Technologies

One under-$10 technology player that's starting to spike within range of triggering a big breakout trade is Xplore Technologies  (XPLR) , which develops, integrates, and markets rugged mobile personal computer systems in the U.S., Canada, and internationally. This stock has been hit hard by the sellers over the last six months, with shares down sharply by 37.3%.

If you take a glance at the chart for Xplore Technologies, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $2.10 to $2.12 a share over the last two months. Following that potential bottom, shares of Xplore Technologies have now started to spike higher and trend slightly above both its 20-day and 50-day moving averages. That spike is now quickly pushing this stock within range of triggering a big a near-term breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades in shares of Xplore Technologies if it manages to break out above some near-term overhead resistance levels at $2.60 to $2.61 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 36,809 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 $2.99 to $3.10, or even $3.35 to $3.45 a share.

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

Pernix Therapeutics

Another under-$10 specialty pharmaceutical player that's starting to spike within range of triggering a near-term 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 falling huge by 72.7%.

If you take a look at the chart for Pernix Therapeutics, you'll notice that this stock ripped sharply higher on Wednesday back above its 50-day moving average of 61 cents per share with strong upside volume flows. Volume for that trading session registered over 8.5 million shares, which is well above its three-month average action of 6.57 million shares. This high-volume rip to the upside is now quickly pushing shares of Pernix Therapeutics 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 Pernix Therapeutics if it manages to break out above some near-term overhead resistance levels at 67 cents per share to its 20-day moving average of 71 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 6.57 million 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 80 to 92 cents, or even $1.04 to $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 some key near-term support levels at 54 to 47 cents per share. One can also buy shares of Pernix Therapeutics 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.

Exfo

One under-$10 testing and measuring equipment player that's starting to trend within range of triggering a big breakout trade is Exfo  (EXFO) , which designs, manufactures, and markets test, service assurance, and network visibility solutions for fixed and mobile network operators, Web-scale service providers, and telecommunications equipment manufacturers worldwide. This stock has been in play with the bulls over the last six months, with shares moving higher by 15.7%.

If you take a glance at the chart for Exfo, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $3.16 to $3.14 a share over the last few weeks. Following that potential bottom, shares of Exfo have now started to spike a bit higher and it's quickly moving 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 Exfo if it manages to break out above some near-term overhead resistance levels at $3.36 to its 200-day moving average of $3.41 a share and then above more key resistance at $3.48 a share with volume that hits near or above its three-month average action of 28,445 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 $3.75 to $4.10, or even $4.20 to $4.36 a share.

Traders can look to buy this stock 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 shares of Exfo 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.

Evolving Systems

Another under-$10 technology player that's starting to spike within range of triggering a near-term breakout trade is Evolving Systems  (EVOL) , which provides software solutions and services to the wireless, wireline, and cable markets in the U.K., Nigeria, Mexico, and internationally. This stock has been under heavy selling pressure over the last six months, with shares dropping sharply by 25.7%.

If you look at the chart for Evolving Systems, you'll notice that this stock recently gapped-down big in August from $5.50 a share to under $4.20 a share with heavy downside volume flows. Following that move, shares of Evolving Systems went on to print a new 52-week low of $3.87 a share with strong downside volume. That said, this stock has now started to rebound off that $3.87 low, and it's quickly trending within range of triggering a big breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades in Evolving Systems if it manages to break out above some near-term overhead resistance levels at $4.20 to $4.26 a share and then above more resistance at $4.30 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 42,779 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 $4.75 a share to its 200-day moving average of $5.14 a share.

Traders can look to buy Evolving Systems off weakness to anticipate that breakout and simply use a stop that sits right below its new 52-week low of $3.87 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.

Tandem Diabetes Care

One final under-$10 medical device player that's starting to spike within range of triggering a near-term breakout trade is Tandem Diabetes Care  (TNDM) , which designs, develops and commercializes various products for people with insulin-dependent diabetes in the U.S. This stock has been under some notable selling pressure over the last six months, with shares trending down by 20.4%.

If you take a glance at the chart for Tandem Diabetes Care, you'll notice that this stock has been uptrending over the last month, with shares moving higher off its new 52-week low of $6.04 a share to its recent high of $7.40 a share. During that uptrend, shares of Tandem Diabetes Care have been making mostly 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 overhead resistance levels.

Traders should now look for long-biased trades in Tandem Diabetes Care if it manages to break out above some near-term overhead resistance levels at its 50-day moving average of $7.18 a share to some more key resistance at $7.40 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 237,051 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 $8 to its 200-day moving average of $8.53, or even $9 to $10 a share.

Traders can look to buy shares of Tandem Diabetes Care off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $6.25 a share to its new 52-week low of $6.04 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.

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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