Just take a look at some of the monster movers to the upside in the under-$10 complex from Wednesday, including Alon Blue Square Israel (BSI) , which exploded higher by 47.2%; Truett-Hurst (THST) , which ripped up by 34.6%; Ascent Solar Technologies (ASTI) ,which surged up by 22.5%; and Lilis Energy (LLEX) , which jumped by 22.1%. 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. 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.
Low-priced stocks are something that I tweet about on a regular basis. 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.
Enphase Energy
One under-$10 technology player that's starting to trend within range of triggering big breakout trade is Enphase Energy (ENPH - Get Report) , which designs, develops and sells microinverter systems for the solar photovoltaic industry in the U.S. and internationally. This stock has been destroyed by the sellers over the last six months, with shares plunging lower by 79.3%.
One under-$10 technology player that's starting to trend within range of triggering big breakout trade is Enphase Energy (ENPH - Get Report) , which designs, develops and sells microinverter systems for the solar photovoltaic industry in the U.S. and internationally. This stock has been destroyed by the sellers over the last six months, with shares plunging lower by 79.3%.
If you take a glance at the chart for Enphase Energy, you'll notice that this stock just recently gapped-down sharply lower from $3.76 a share to under $2.50 a share with heavy downside volume flows. Following that move, shares of Enphase Energy continued to trend lower with the stock printing a new all-time low of $1.63 a share. Since tagging that low, this stock has now started to rip higher with shares moving back above its 20-day moving average of $1.92 a share on Wednesday with decent upside volume flows. That move is now quickly pushing this stock within range of triggering a big breakout trade above some key near-term overhead resistance levels.
Market players should now look for long-biased trades in shares of Enphase Energy if it manages to break out above some near-term overhead resistance levels at $2.20 a share and then above its gap-down-day high of around $2.50 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 989,570 shares. If that breakout develops soon, then this stock will set up to re-fill some of its previous gap-down-day zone from early November that started at $3.76 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 $1.85 or $1.75 a share. One can also buy shares of Enphase Energy 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.
Sunrun
Another under-$10 technology player that's starting to spike within range of triggering a big breakout trade isSunrun (RUN) , which develops, owns, manages and sells residential solar energy systems. This stock has been smashed down by the sellers over the last three months, with shares falling sharply by 36.2%.
If you take a look at the chart for Sunrun, you'll notice that this stock has been downtrending badly over the last three months and change, with shares falling sharply lower off its high of $12.24 to its new all-time low of $6.36 a share. During that downtrend, shares of Sunrun have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock spiked sharply higher on Wednesday back above its 20-day moving average of $7.07 a share with strong upside volume flows. Volume on that day registered over 621,000 shares, which is well above its three-month average action of 499,252 a shares. This high-volume trend higher is now quickly pushing this stock within range of triggering a big breakout trade above some key near-term overhead resistance levels.
Market players should now look for long-biased trades in Sunrun if it manages to break out above some key near-term overhead resistance levels at $7.50 to $7.93 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 499,252 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 around $8.50 to its 50-day moving average of $8.58, or even $9.44 to $10 a share.
Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right below Wednesday's intraday low of $6.91 a share or around its all-time low of $6.36 a share. One can also buy shares of Sunrun 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.
Roka Bioscience
One under-$10 molecular diagnostics player that's starting to move within range of triggering a major breakout trade isRoka Bioscience (ROKA - Get Report) , which focuses on the development and commercialization of molecular assay technologies for the detection of foodborne pathogens in the U.S. This stock has been slammed lower by the sellers over the last six months, with shares dropping large by 52.2%.
If you take a glance at the chart for Roka Bioscience, you'll notice that this stock has been downtrending badly over the last five months, with shares plunging lower off its high of $3.75 a share to its new all-time low of $1.11 a share. During that downtrend, shares of Roka Bioscience have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock has started to spike notably higher over the last two trading sessions with strong upside volume flows. Volume on Wednesday registered over 160,000 shares, which is well above its three-month average action of 40,314 shares. This high-volume trend 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.
Traders should now look for long-biased trades in Roka Bioscience if it manages to break out above some key near-term overhead resistance levels at $1.30 to $1.35 a share and then above its 20-day moving average of $1.40 a share and then over more resistance at $1.50 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 40,314 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 its 50-day moving average of $1.71 to around $1.80, or even $2.14 to $2.40 a share.
Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right around Wednesday's intraday low of $1.15 a share or near its all-time low of $1.11 a share. One can also buy shares of Roka Bioscience 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.
Castlight Health
Another under-$10 application software player that's starting to trend within range of triggering a big breakout trade isCastlight Health (CSLT - Get Report) , which provides cloud-based software in the U.S. This stock has been hammered lower by the bears over the last six months, with shares falling dramatically by 53.2%.
If you look at the chart for Castlight Health, you'll notice that this stock has been uptrending over the last few weeks, with shares moving higher off its all-time low of $3.59 a share to its recent high of $4.31 a share. That uptrend has now pushed this stock back above its 20-day moving average of $4.03 a share with some decent upside volume flows. Prior to this short-term uptrend, shares of Castlight Health were stuck in a major downtrend for the last six months, with shares collapsing off its high of close to $10 to that new all-time low of $3.59 a share. This stock has now reversed its trend in the short-term and it's beginning to spike within range of triggering a big breakout trade.
Market players should now look for long-biased trades in Castlight Health if it manages to break out above some near-term overhead resistance levels at $4.31 a share and then above its 50-day moving average of $4.38 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 739,803 shares. If that breakout gets started 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 from early November of around $4.80 a share. Any high-volume move above that level will then give this stock a chance to re-test or possibly take out its next major overhead resistance levels at $5.39 to $5.88, or even $6.50 to its 200-day moving average of $6.72 a share.
Traders can look to buy Castlight Health off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $3.92 a share or around its all-time low of $3.59 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.
Antares Pharma
One final under-$10 specialty pharmaceutical player that's starting to spike within range of triggering a major breakout trade is Antares Pharma (ATRS - Get Report) , which that focuses on developing and commercializing self-administered parenteral pharmaceutical products and technologies worldwide. This stock has been hit hard by the sellers over the last six months, with shares falling big by 41.1%.
If you take a glance at the chart for Antares Pharma, you'll notice that this stock has been downtrending badly over the last six months, with shares falling sharply off its high of around $2.50 a share to its new 52-week low of $1.22 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 Antares Pharma spiked modestly higher on Wednesday right above some near-term support at $1.28 a share with monster upside volume flows. Volume for that day registered over 3.76 million shares, which is easily above its three-month average action of 818,214 a shares. That high-volume 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.
Traders should now look for long-biased trades in Antares Pharma if it manages to break out above its 20-day moving average of $1.35 a share and then above more key resistance levels at $1.40 to its 50-day moving average of $1.48 a share and then over $1.51 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 818,214 shares. If that breakout takes hold soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $1.71 to $2.03, or even its 200-day moving average of $2.09 to $2.25 a share.
Traders can look to buy shares of Antares Pharma off weakness to anticipate that breakout and simply use a stop that sits right around its new 52-week low of $1.22 a share. One can also buy this stock off strength once it starts to smash above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
By Roberto Pedone
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