5 Stocks Under $10 That Could Make You a Lot of Money

Every day on Wall Street, certain stocks trading for under $10 a share experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and solid 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 Cogentix Medical (CGNT) , which exploded up by 50.8%; Histogenics (HSGX) , which ripped higher by 17.8%; Comstock Resources (CRK) , which jumped by 17.7%; and MGT Capital (MGT) , which spiked by 17.7%. 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 trade higher from current levels.

Vascular Biogenics

One under-$10 clinical-stage biopharmaceutical player that's starting to trend within range of triggering a major breakout trade is Vascular Biogenics  (VBLT) , which focuses on the discovery, development and commercialization of treatments for cancer and immune-inflammatory diseases in Israel. This stock has been under notable selling pressure over the last three months, with shares off sharply by 26.1%.

If you take a glance at the chart for Vascular Biogenics, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $3.74 to $3.80 a share over the last two months. Following that potential bottom, shares of Vascular Biogenics have now started to trend back above both its 200-day moving average of $3.93 a share and its 50-day moving average of $4.12 a share. That trend is now quickly pushing this stock within range of triggering a major breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades in shares of Vascular Biogenics if it manages to break out above some near-term overhead resistance levels at $4.47 to $4.87 a share and then above more resistance at $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 476,867 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 $5.50 to $5.75, or even $6.25 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 its 200-day moving average of $3.93 a share or around those recent double bottom support levels. One can also buy shares of Vascular Biogenics 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.

Corcept Therapeutics

Another under-$10 pharmaceutical player that's starting to spike within range of triggering a near-term breakout trade is Corcept Therapeutics  (CORT) , which engages in the discovery, development and commercialization of drugs for the treatment of severe metabolic, oncologic, and psychiatric disorders in the U.S. This stock has been in play with the bulls over the last six months, with shares ripping higher by 36.9%.

If you take a look at the chart for Corcept Therapeutics, you'll notice that this stock spiked sharply higher on Wednesday back above both its 20-day moving average of $5.57 a share and its 50-day moving average of $5.70 a share with decent upside volume flows. This strong rip to the upside managed to push shares of Corcept Therapeutics into breakout territory, since the stock closed above a near-term downtrend line that formed off its recent high of $6.16 a share. That move is now quickly pushing this stock within range of triggering a much bigger breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades in Corcept Therapeutics if it manages to break out above some near-term overhead resistance levels at $5.82 to $6.16 a share and then above its 52-week high of $6.33 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 302,680 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 level at $7.66 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 near-term support levels at $5.30 to $5.24 a share. One can also buy shares of Corcept Therapeutics 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.

Synthetic Biologics

An under-$10 biotechnology player that's starting to move within range of triggering a big breakout trade is Synthetic Biologics  (SYN) , which engages in developing therapeutics to protect the gut microbiome while targeting pathogen-specific diseases in the U.S. This stock has been under modest selling pressure over the last six months, with shares sliding lower by 9.6%.

If you take a glance at the chart for Synthetic Biologics, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $1.54 to $1.52 a share over the last six months. Following that potential bottom, shares of Synthetic Biologics have now started to spike higher back above its 20-day moving average of $1.65 a share. That bump 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.

Traders should now look for long-biased trades in Synthetic Biologics if it manages to break out above its 50-day moving average of $1.71 a share and then above more near-term resistance levels at $1.72 to $1.75 a share with volume that hits near or above its three-month average action of 533,964 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 $1.82 to $1.94, or even its 200-day moving average of $1.97 to $2.25 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 near-term support at $1.60 a share or near those double bottom support levels. One can also buy shares of Synthetic Biologics 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.

Calumet Specialty Products Partners

An under-$10 energy player that's starting to spike within range of triggering a major breakout trade is Calumet Specialty Products Partners  (CLMT) , which produces and sells specialty hydrocarbon products in North America. This stock has been smacked lower by the sellers over the last six months, with shares dropping sharply by 56.4%.

If you look at the chart for Calumet Specialty Products Partners, you'll notice that this stock has been uptrending strong over the last two months and change, with shares moving higher off its low of $4.25 a share to its recent high of $5.88 a share. During that uptrend, this stock has been making mostly higher lows and higher highs, which is bullish technical price action. Shares of Calumet Specialty Products Partners spiked notably higher on Wednesday right off its 20-day moving average of $5.46 a share with decent upside volume flows. That spike is now quickly pushing this stock within range of triggering a major breakout trade.

Market players should now look for long-biased trades in Calumet Specialty Products Partners if it manages to break out above some near-term overhead resistance levels at $5.70 to $5.88 a share and then once it clears its gap-down-day high from April at $6.18 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 596,906 shares. If that breakout hits soon, then this stock will set up to re-fill some of its previous gap-down-day zone from April that started near $11 a share.

Traders can look to buy Calumet Specialty Products Partners off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $5.36 a share or around its 50-day moving average of $5.01 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.

Aurinia Pharmaceuticals

One final under-$10 clinical-stage pharmaceutical player that's starting to trend within range of triggering a big breakout trade is Aurinia Pharmaceuticals  (AUPH) , which engages in the development of a therapeutic drug to treat autoimmune diseases in Canada. This stock has been under heavy selling pressure over the last three months, with shares falling sharply by 26%.

If you take a glance at the chart for Aurinia Pharmaceuticals, you'll notice that this stock recently gapped-down sharply lower from around $4.40 a share to its low of $1.74 a share with massive downside volume flows. Following that crash, this stock has now potentially formed a double bottom chart pattern, after shares of Aurinia Pharmaceuticals found some buying interest over the last few weeks at $1.93 to $1.88 a share. This stock has now started to spike a bit higher off those recent double bottom support levels, and it's beginning to trend within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Aurinia Pharmaceuticals if it manages to break out above some near-term overhead resistance levels at $2.15 to $2.23 a share and then above its 20-day moving average of $2.39 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 845,031 shares. If that breakout kicks off 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 $2.62 a share to $2.73, or even its 50-day moving average of $2.85 a share. Any high-volume move above $2.85 a share will then give this stock a chance to re-fill some of its recent gap-down-day zone that started near $4.40 a share.

Traders can look to buy shares of Aurinia Pharmaceuticals 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 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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