5 Stocks Under $10 Set to Soar
Just take a look at some of the hot movers in the under-$10 complex from Wednesday, including BioFuel (BIOF) , which skyrocketed by 40.6%; Pacific Ethanol (PEIX) , which blasted to the upside by 33.6%; Stereotaxis (STXS) , which ripped higher by 29.8%; and Novavax (NVAX) , which closed up 22.6%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.
I'm not as eager to recommend investing long term in stocks that trade less than $10 a share because these names can be very speculative, and the odds for picking the long-term winners aren't great. But I definitely love to trade stocks that are priced below $10. I like to view them as a trading vehicle with lots of volatility and lots of upside when the trade is timed right.
When I trade under-$10 names, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 names 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 trade higher from current levels.