These 5 Stocks Under $10 Could Explode Higher Soon
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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 Transgenomic (TBIO) , which is exploding by 173%; Memorial Production Partners (MEMP) , which is ripping higher by 100%; Adesto Technologies (IOTS) , which is soaring by 52%; and Truett-Hurst (THST) , which is surging by 24.7%. 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.
Group Financiero Santander Mexico
One under-$10 financial player that’s starting to spike within range of triggering a near-term breakout trade is Group Financiero Santander Mexico (BSMX) , which provides a range of financial services to individuals, private banking clients, small and medium-sized enterprises, government institutions, and corporate and institutional customers primarily in Mexico. This stock has been under selling pressure over the last six months, with shares falling by 22.5%.
If you take a look at the chart for Group Financiero Santander Mexico, you’ll notice that this stock is spiking sharply higher on Thursday back above both its 20-day moving average of $7.09 a share and its 50-day moving average of $7.13 a share with decent upside volume flows. This jump to the upside is now quickly pushing shares of Group Financiero Santander Mexico 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 Group Financiero Santander Mexico if it manages to break out above some near-term overhead resistance at $7.40 to $7.60 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 1.70 million 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 its 200-day moving average of $8.17 a share to $8.50, or even $8.83 to $9.30 a share.
Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support levels at its 20-day moving average of $7.09 a share or around $6.93 a share. One can also buy shares of Group Financiero Santander Mexico 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.
Opexa Therapeutics
Another under-$10 biopharmaceutical player that’s starting to move within range of triggering a big breakout trade is Opexa Therapeutics (OPXA) , which develops personalized immunotherapy to treat multiple sclerosis (MS) and other autoimmune diseases based on its proprietary T-cell technology. This stock has been destroyed by the sellers over the last six months, with shares plunging lower by 78.1%.
If you take a glance at the chart for Opexa Therapeutics, you’ll notice that this stock has been consolidating and trending sideways over the last month and change, with shares moving between 81 cents per share on the downside and $1.15 a share on the upside. This stock is now starting to bounce right off its 50-day moving average of 87 cents per share, and that bounce is quickly pushing shares of Opexa Therapeutics within range of triggering a big breakout trade above some key overhead resistance levels.
Traders should now look for long-biased trades in Opexa Therapeutics if it manages to break out above some near-term overhead resistance levels at 98 cents to $1.03 a share with volume that hits near or above its three-month average action of 1.17 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 $1.15 to around $1.25, or even $1.50 a share. Any high-volume move above $1.50 will then give this stock a chance to re-fill some of its previous gap-down-day zone from last October that started around $3 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 near-term support levels at 87 cents to 81 cents per share. One can also buy shares of Opexa 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.
Groupon
One under-$10 Internet information provider that’s starting to trend within range of triggering a near-term breakout trade is Groupon (GRPN) , which operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount in North America, Europe, the Middle East, Africa, and internationally. This stock has been smacked lower by the bears over the last three months, with shares falling sharply by 28.1%.
If you look at the chart for Groupon, you’ll notice that this stock is starting to spike higher on Thursday back above its 20-day moving average of $3.54 a share with strong upside volume flows. Volume so far has registered over 11.5 million shares, which is within range of its three-month average action of 14.04 million shares. This high-volume jump to the upside is now quickly pushing shares of Groupon 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 Groupon if it manages to break out above some near-term overhead resistance levels at $3.74 to its 50-day moving average of $3.78 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 14.04 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 $4 to $4.20, or even its 200-day moving average of $4.23 a share to $4.80 a share.
Traders can look to buy Groupon off weakness to anticipate that breakout and simply use a stop that sits right around some near-term support at $3.29 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.
Inotek Pharmaceuticals
Another under-$10 clinical-stage biopharmaceutical player that’s trending within range of triggering a big breakout trade is Inotek Pharmaceuticals (ITEK) , which focuses on the discovery, development, and commercialization of therapies for glaucoma and other diseases of the eye in the U.S. This stock has been destroyed by the bears over the last six months, with shares collapsing by 80%.
If you look at the chart for Inotek Pharmaceuticals, you’ll notice that this stock recently gapped-down sharply lower from around $6.50 a share to its new 52-week low of $1.65 a share with monster downside volume. Following that collapse, this stock has now started to stabilize a bit and trend between $1.65 a share on the downside and $1.90 a share on the upside. Shares of Inotek Pharmaceuticals are now starting to bounce a bit off that $1.65 low, and it’s beginning to trend within range of triggering a big breakout trade above some key overhead resistance levels.
Market players should now look for long-biased trades in Inotek Pharmaceuticals if it manages to break out above some near-term overhead resistance levels at $1.75 to $1.80 a share and then above more key resistance at $1.90 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 835,756 shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out its next major overhead resistance level at its gap-down-day high of $2.20 a share. Any high-volume move above $2.20 will then give this stock a chance to re-fill some of its gap-down-day zone from last month that started near $6.50 a share.
Traders can look to buy Inotek Pharmaceuticals off weakness to anticipate that breakout and simply use a stop that sits right around its new 52-week low of $1.65 a share. 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.
Strongbridge Biopharma
One final under-$10 biopharmaceutical player that’s starting to spike within range of triggering a near-term breakout trade is Strongbridge Biopharma (SBBP) , which focuses on the development, in-licensing, acquisition, and commercialization of various complementary products and product candidates that target rare diseases in the U.S. and internationally. This stock has been smashed lower by the sellers over the last six months, with shares dropping sharply by 28.3%.
If you take a glance at the chart for Strongbridge Biopharma, you’ll notice that this stock has been uptrending over the last few weeks, with shares moving higher off its new 52-week low of $2 a share to its intraday high on Thursday of $2.83 a share with strong upside volume flows. This uptrend is coming after a nasty downtrend, that saw the stock fall off its recent high of $6.23 a share to its new 52-week low of $2 a share. Shares of Strongbridge Biopharma are now quickly moving within range of triggering a near-term breakout trade above some key overhead resistance levels.
Traders should now look for long-biased trades in Strongbridge Biopharma if it manages to break out above some near-term overhead resistance levels at its 20-day moving average of $2.79 a share to around $2.80 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 40,896 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 $3.30 to its 50-day moving average of $3.48 a share, or even $3.60 to $4 a share.
Traders can look to buy shares of Strongbridge Biopharma off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support levels at around $2.50 to $2.30 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.
