5 Stocks Under $10 Poised for Big Breakouts

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 Professional Diversity Network (IPDN) , which soared by 40.8%; Skypeople Fruit Juice (SPU) , which surged ripped by 40.4%; Anavex Life Sciences (AVXL) , which jumped by 31.5%; and Marinus Pharmaceuticals (MRNS) , which surged by 25.8%. 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.

Pengrowth Energy

One under-$10 energy player that's starting to trend within range of triggering a big breakout trade is Pengrowth Energy  (PGH) , which engages in the acquisition, exploration, development and production of oil and natural gas assets in the Alberta, British Columbia, Saskatchewan and Nova Scotia provinces in Canada. This stock has been in play with the bulls over the last six months, with shares soaring by 46.2%.

If you take a glance at the chart for Pengrowth Energy, you'll notice that this stock spiked sharply higher on Wednesday right off some near-term support around $1.40 a share and back above both its 20-day moving average of $1.51 a share and its 50-day moving average of $1.52 a share with strong upside volume flows. Volume for that trading session registered over 2 million shares, which is well above its three-month average action of 1.02 million shares. This high-volume rip to the upside is now quickly pushing shares of Pengrowth Energy within range of triggering a big breakout trade.

Market players should now look for long-biased trades in shares of Pengrowth Energy if it manages to break out above some near-term overhead resistance levels at $1.55 to $1.58 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 1 million 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 $1.77 to $1.80, or even $1.95 to its 52-week high of $2.08 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 $1.40 to $1.36 a share. One can also buy shares of Pengrowth 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.

Ziopharm Oncology

An under-$10 biotechnology player that's starting to trend within range of triggering a near-term breakout trade is Ziopharm Oncology  (ZIOP) , which focuses on acquiring, developing and commercializing a portfolio of cancer therapies that address unmet medical needs through synthetic immuno-oncology. This stock has been under some notable selling pressure over the last six months, with shares falling by 15%.

If you take a look at the chart for Ziopharm Oncology, you'll notice that this stock ripped sharply higher on Wednesday right above its 20-day moving average of $5.41 a share with decent upside volume flows. Volume for that trading session registered over 2.18 million shares, which is well above its three-month average action of 2.09 million shares. This high-volume spike to the upside is now quickly pushing shares of Ziopharm Oncology 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 Ziopharm Oncology if it manages to break out above some near-term overhead resistance levels at $6.12 to $6.14 a share and then above $6.24 to around $6.25 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 2.09 million 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 its 200-day moving average of $6.60 a share to $7, or even $7.50 to $8 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 20-day moving average of $5.41 a share or its 50-day moving average of $5.28 a share. One can also buy shares of Ziopharm Oncology 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.

SAExploration Holdings

One under-$10 oilfield services player that's starting to spike within range of triggering a major breakout trade is SAExploration Holdings  (SAEX) , which provides seismic data acquisition and logistical support services to the oil and gas industry in North and South America, and Southeast Asia. This stock has been destroyed by the bears over the last six months, with shares plunging lower by 90.4%.

If you take a glance at the chart for SAExploration Holdings, you'll notice that this stock ripped sharply higher on Wednesday right above some near-term support at $7.50 a share and briefly back above its 20-day moving average of $9.04 a share with strong upside volume flows. Volume for that trading session registered over 1.77 million shares, which is well above its three-month average action of 582,000 shares. This high-volume rip to the upside is now quickly pushing shares of SAExploration Holdings within range of triggering a major breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in SAExploration Holdings if it manages to break out above Wednesday's intraday high of $9.48 a share with volume that hits near or above its three-month average action of 582,000 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 $10.80 to $11.10, or even $12 to its 200-day moving average of $13.54 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right around Wednesday's intraday low of $8.16 a share or near more key support at $7.50 a share. One can also buy shares of SAExploration Holdings 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.

Achaogen

Another under-$10 clinical-stage biopharmaceutical player that's starting to trend within range of triggering a big breakout trade is Achaogen  (AKAO) , which discovers, develops and commercializes antibacterials to treat multi-drug resistant gram-negative infections in the U.S. This stock has been popular with the bulls over the last six months, with shares ripping higher by 44.1%.

If you look at the chart for Achaogen, you'll notice that this stock has been uptrending strong over the last three months, with shares moving higher off its low of $3.36 a share to its recent high of $4.69 a share. During that uptrend, shares of Achaogen have been making mostly higher lows and higher highs, which is bullish technical price action. This stock trended notably to the upside on Wednesday right off its 20-day moving average of $4.28 a share with above-average volume. This high-volume bump to the upside is now quickly pushing shares of Achaogen within range of triggering a big breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades in Achaogen if it manages to break out above some near-term overhead resistance levels at $4.54 to $4.69 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 134,0777 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 to $5.37, or even $6.08 to its 52-week high of $6.50 a share.

Traders can look to buy Achaogen off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support at $4.01 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.

Axsome Therapeutics

One final under-$10 clinical-stage biopharmaceutical player that's starting to move within range of triggering a big breakout trade is Axsome Therapeutics  (AXSM) , which develops therapies for the management and treatment of central nervous system disorders. This stock is down modestly over the last six months, with shares off by just 3%.

If you take a glance at the chart for Axsome Therapeutics, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $7.08 to $7.12 a share over the last month. Following that potential bottom, this stock has now started to trend higher back above both its 20-day moving average of $7.46 a share and its 50-day moving average of $7.53 a share. That trend to the upside is now quickly pushing shares of Axsome Therapeutics within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Axsome Therapeutics if it manages to break out above some near-term overhead resistance levels at $8 to $8.20 a share and then above more resistance levels at $8.34 to $8.66 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 27,377 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 $9.60 to $9.75, or even $10.50 to $11 a share.

Traders can look to buy shares of Axsome Therapeutics 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 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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