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.
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.
Global Eagle Entertainment
If you take a look at the chart for Global Eagle Entertainment (ENT) , you'll notice that this stock recently gapped down sharply lower from $6 a share to its new 52-week low of $4 a share with heavy downside volume. Following that move, this stock has now started to rebound off that $4 low, and it's quickly trending within range of triggering a near-term breakout trade.
Traders should now look for long-biased trades in Global Eagle Entertainment if it manages to break out above some near-term resistance levels at $4.50 to $4.75 a share with strong volume. Look for a sustained move above those levels with volume that hits near or above its three-month average of 535,825 shares. If that breakout fires off soon, then this stock will set up to make a run at its 20-day moving average of $5.44 to its 50-day moving average of $6.13 a share.