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

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 Galectn Therapeutics (GALT) , which ripped up 35.5%; Novavax (NVAX) , which surged by 32.8%; MGT Capital Investments (MGT) , which soared by 21.6%; and Caesars Entertainment (CZR) , which jumped by 21.4%. 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.

Ritter Pharmaceutical

One under-$10 biotechnology player that's starting to spike within range of triggering a big breakout trade is Ritter Pharmaceutical  (RTTR) , which develops novel therapeutic products that modulate the human gut microbiome to treat gastrointestinal diseases. This stock has been in favor with the bulls over the last six months, with shares moving higher by 18.3%.

If you take a glance at the chart for Ritter Pharmaceutical, you'll notice that this stock spiked sharply higher on Wednesday right off its 50-day moving average of $1.37 a share and back above its 200-day moving average of $1.51 a share with heavy upside volume flows. Volume for that trading session registered over 600,000 shares, which is well above its three-month average action of 68,786 shares. That high-volume rip to the upside is now quickly pushing shares of Ritter Pharmaceuticals within range of triggering a big breakout trade.

Market players should now look for long-biased trades in shares of Ritter Pharmaceutical if it manages to break out above some near-term overhead resistance levels at $1.55 to $1.65 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 68,786 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 $1.90 to $2.47 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $1.35 to $1.30 a share. One can also buy shares of Ritter Pharmaceutical 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.

FuelCell Energy

An under-$10 alternative energy player that's starting to spike within range of triggering a near-term breakout trade is FuelCell Energy  (FCEL) , which designs, manufactures, sells, installs, operates and services stationary fuel cell power plants for distributed power generation. This stock has been smacked lower by the bears over the last six months, with shares falling sharply by 28.4%.

If you take a look at the chart for FuelCell Energy, you'll notice that this stock spiked sharply higher on Wednesday back above both its 20-day moving average of $5.19 a share and its 50-day moving average of $5.27 a share with strong upside volume flows. Volume for that trading session registered over 730,000 shares, which is well above its three-month average action of 550,573 shares. This high-volume rip to the upside is now quickly pushing shares of FuelCell Energy 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 FuelCell Energy if it manages to break out above some near-term overhead resistance levels at $5.40 to $5.51 a share and then above $5.60 to $5.70 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 550,573 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 its 200-day moving average of $5.85 a share to $6.15, or even $6.44 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 Wednesday's intraday low of $5.08 a share. One can also buy shares of FuelCell Energy 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.

Invitae

One under-$10 genetic information player that's starting to move within range of triggering a near-term breakout trade is Invitae  (NVTA) , which focuses on bringing comprehensive genetic information into mainstream medical practice to enhance the quality of healthcare. This stock has been under modest selling pressure over the last six months, with shares off by 10.4%.

If you take a glance at the chart for Invitae, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $7.60 to $7.61 a share over the last few weeks. Following that potential bottom, shares of Invitae have now started to spike higher and move back above its 20-day moving average of $8.09 a share . That move is now quickly pushing this stock within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Invitae if it manages to break out above both its 50-day moving average of $8.39 a share and its 200-day moving average of $8.51 a share with volume that hits near or above its three-month average action of 118,023 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 $9.20 to $9.60, or even $10 to $10.50 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 Invitae 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.

Mirati Therapeutics

Another under-$10 clinical-stage biopharmaceutical player that's starting to rip within range of triggering a big breakout trade is Mirati Therapeutics  (MRTX) , which develops a pipeline of products targeting oncology. This stock has been destroyed by the sellers over the last six months, with shares falling sharply by 73.8%.

If you look at the chart for Mirati Therapeutics, you'll notice that this stock ripped sharply higher on Wednesday back above both its 20-day moving average of $5.11 a share and its 50-day moving average of $5.14 a share with strong upside volume flows. Volume for that trading session registered over 470,000 shares, which is well above its three-month average action of 271,281 shares. This high-volume rip to the upside is now quickly pushing shares of Mirati Therapeutics within range of triggering a big breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades in Mirati Therapeutics if it manages to break out above some near-term overhead resistance levels at $5.67 to $5.82 a share and then above more resistance at$5.87 to $6 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 271,281 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 $6.75 to $7, or even $7.50 to $8 a share.

Traders can look to buy Mirati Therapeutics off weakness to anticipate that breakout and simply use a stop that sits just below its 20-day moving average of $5.11 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.

BioCryst Pharmaceuticals

One final under-$10 biotechnology player that's starting to trend within range of triggering a big breakout trade is BioCryst Pharmaceuticals  (BCRX) , which designs, optimizes and develops small molecule drugs that block key enzymes involved in the pathogenesis of diseases. This stock has been in play with the bulls over the last six months, with shares ripping higher by 64.4%.

If you take a glance at the chart for BioCryst Pharmaceuticals, you'll notice that this stock recently formed a triple bottom chart pattern, after shares found some buying interest at $3.95, $3.98 and $4.02 a share over the last three months. Following that potential bottom, this stock has now started to spike higher and move back above both its 20-day moving average of $4.36 a share and its 200-day moving average of $4.36 a share with decent upside volume flows. That trend to the upside is now quickly pushing shares of BioCryst Pharmaceuticals within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in BioCryst Pharmaceuticals if it manages to break out above some near-term overhead resistance levels at $4.84 to $5.20 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 943,195 shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its next major overhead resistance level at $5.80 a share. Any high-volume move above $5.80 will then give this stock a chance to re-fill some of its previous gap-down-day zone from February that started near $7.50 a share.

Traders can look to buy shares of BioCryst Pharmaceuticals off weakness to anticipate that breakout and simply use a stop that sits right below its 200-day moving average of $4.36 a share or around more near-term support at $4.20 a 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.

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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