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.
If you take a look at the chart for Opko Health (OPK) , you'll notice that this stock is starting to trend back above its 20-day moving average of $8.17 a share. This trend back above its 20-day is on top of a recent uptrend, that has taken the stock from its new 52-week low of $7.13 to its recent high of $8.54. That uptrend is now starting to push shares of Opko Health within range of triggering a near-term breakout trade.
Traders should now look for long-biased trades in Opko Health if it manages to break out above its 50-day moving average of $8.50 to $8.54 and then above more resistance at $8.92 with strong volume. Look for a sustained move above those levels with volume that hits near or above its three-month average of 5.15 million shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next resistance levels at $9.45 to its 200-day at $9.66 a share.