These 5 Stocks Under $10 Could Explode Up Soon

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 Thursday, including Jaguar Animal Health (JAGX) , which is soaring by 64%; Celsion (CLSN) , which is ripping up by 33%; Actinium Pharmaceuticals (ATNM) , which is blowing up by 25%; and Biocept (BIOC) , which is surging by 21%. 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 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.

Stemline Therapeutics

One under-$10 clinical stage biopharmaceutical player that's starting to move within range of triggering a near-term breakout trade is Stemline Therapeutics (STML) , which focuses on the discovery, acquisition, development, and commercialization of proprietary oncology therapeutics in the U.S. This stock has been smacked sharply lower by the bears over the last three months, with shares dropping sharply by 42.3%.

If you take a look at the chart for Stemline Therapeutics, you'll notice that this stock recently gapped-down sharply lower from $10.50 a share to its low of $5.50 a share with massive downside volume flows. Following that plunge lower, shares of Stemline Therapeutics have now started to rebound off that $5.50 low to over $7 a share with a number of strong upside volume sessions. That sharp rebound is now quickly pushing this stock within range of triggering a major breakout trade that could push the stock back into its recent gap-down-day zone.

Market players should now look for long-biased trades in Stemline Therapeutics if it manages to break out above some key overhead resistance levels at $7 to $7.25 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 volume of 325,710 shares. If that breakout fires off soon, then this stock will set up to re-fill some of its recent gap-down-day zone that started near $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 around some key near-term support levels at $6.50 or $6 a share. One can also buy shares of Stemline 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.

Stein Mart

Another under-$10 apparel stores player that's starting to spike within range of triggering a big breakout trade is Stein Mart (SMRT) , which operates as a retailer that provides fashion merchandise products and related services in the U.S. This stock has been hit hard by the sellers over the last six months, with shares falling sharply by 56.5%.

If you take a glance at the chart for Stein Mart, you'll notice that this stock has been downtrending badly over the last six months, with shares falling of its high of $8 a share to its new 52-week low of $3.41 a share. During that downtrend, this stock has been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of Stein Mart have now started to some early signs of forming a bottoming chart pattern, since the stock has stabilized a bit around $3.50 a share. This stock is also now starting to spike notably higher on Thursday with unusual upside volume flows, and that spike is quickly pushing it within range of triggering a big breakout trade.

Traders should now look for long-biased trades in Stein Mart if it manages to break out above its 20-day moving average of $3.71 a share and then once it takes out more key resistance levels at $3.73 to $4 a share with volume that hits near or above its three-month average action of 584,766 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 $4.25 to its 50-day moving average of $4.61 a share, or even $5 to $5.50 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right below its new 52-week low of $3.41 a share. One can also buy shares of Stein Mart 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.

Anthera Pharmaceuticals

One under-$10 biopharmaceutical player that's starting to trend within range of triggering a major breakout trade is Anthera Pharmaceuticals (ANTH) , which focuses on the development and commercialization of medicines for patients with unmet medical needs. This stock has been destroyed by the sellers over the last six months, with shares plunging lower by 80.8%.

If you look at the chart for Anthera Pharmaceuticals, you'll notice that this stock has recently formed a double bottom chart pattern, after shares found some buying interest at 51 to 53 cents per share over the last few weeks. Following that potential bottom, shares of Anthera Pharmaceuticals have now started to spike modestly higher and flirt with its 20-day moving average of 59 cents per share. That modest spike to the upside is now quickly pushing this stock within range of triggering a major breakout trade above some key near-term overhead resistance levels.

Market players should now look for long-biased trades in Anthera Pharmaceuticals if it manages to break out above some near-term overhead resistance levels at 60 to 63 cents per share and then above more resistance around 67 cents per 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 2.07 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 75 to 84 cents per share. Any high-volume move above 84 cents per share will then give this stock a chance to re-fill some of its previous gap-down-day zone from last December that started near $2 a share.

Traders can look to buy Anthera 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 bust above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Agenus

Another under-$10 immuno-oncology player that's moving within range of triggering a big breakout trade is Agenus (AGEN) , which focuses on the discovery and development of treatments that engage the body's immune system for patients suffering with cancer. This stock has been under notable selling pressure over the last six months, with shares trading off by 32.9%.

If you look at the chart for Agenus, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $3.59 to $3.62 a share over the last month or so. Following that potential bottom, shares of Agenus have now started to uptrend a bit, with the stock moving higher from its low of $3.59 a share to its recent high of $4.22 a share. That uptrend is now starting to push this stock within range of triggering a big breakout trade above a key downtrend line that dates back to last December.

Market players should now look for long-biased trades in Agenus if it manages to break above that downtrend line that will start over its 50-day moving average of $4.12 a share and then above more key resistance levels at $4.22 to $4.45 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 1.09 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 $4.87 a share to $4.95, or even $5.50 to $6 a share.

Traders can look to buy Agenus off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $3.87 a share, or around those recent double bottom support levels. 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.

ProQR Therapeutics

One final under-$10 biopharmaceutical player that's quickly trending within range of triggering a major breakout trade is ProQR Therapeutics (PRQR) , which engages in the discovery and development of RNA-based therapeutics for the treatment of genetic disorders. This stock has been hit notably by the sellers over the last six months, with shares falling by 25.2%.

If you take a glance at the chart for ProQR Therapeutics, you'll notice that this stock recently attempted to form a double bottom chart pattern, after shares found some buying interest at $3.95 to $3.80 a share over the last three months and change. Following that potential bottom, shares of ProQR Therapeutics have now started to trend modestly higher, and it's beginning to move within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in ProQR Therapeutics if it manages to break out above some near-term overhead resistance levels at its 20-day moving average of $4.15 a share to $4.20 a share and then above its 50-day moving average of $4.37 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 41,236 shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $5 to its 200-day moving average of $5.07 a share, or even $5.20 to $5.50 a share.

Traders can look to buy shares of ProQR Therapeutics off weakness to anticipate that breakout and simply use a stop that sits right below its recent low of $3.80 a share. 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.

This article is commentary by an independent contributor. At the time of publication, the author held a long position in shares of PRQR.

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