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 technically bullish patterns. These setups often produce monster moves higher in very short time frames.
With that in mind, here's a look at several under-$10 stocks that look poised to potentially trade higher from current levels.
If you take a look at the chart for Dominion Diamond (DDC) , you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $8.30 to $8.29 over the last six months. This stock has now started to trend higher off those support levels, and it's starting to move within range of triggering a near-term breakout trade.
Traders should now look for long-biased trades in Dominion Diamond if it manages to break out above some near-term resistance levels at $8.72 to $8.85 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 239,150 shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next key resistance levels at its 200-day of $9.23 or its 50-day of $9.69, or even $10 a share.