5 Stocks Under $10 Set to Soar Higher

Tickers in this article: IQNT LEI MY VRNG ZLCS
WINDERMERE, Fla. ( Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for $10 a share or less don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sound risk management are banking ridiculous coin on a regular basis.

Just take a look at some of the hot movers in the under-$10 complex today, including Online Resources (ORCC) , which is exploding higher by 81%; Harte-Hanks (HHS) , which is ripping higher 22%; Keryx Biopharmaceuticals (KERX) , which is soaring 9.1%; and Oclaro (OCLR) , which is up 7.8%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

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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.

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.

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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 potentially trade higher from current levels.

>>5 Hated Earnings Stocks Poised to Pop China Ming Yang Wind Power Group

One under-$10 stock that's just starting to trigger a breakout trade here is China Ming Yang Wind Power Group (MY) , a wind turbine manufacturer in China. This stock is blazing a trail to the upside in 2013, with shares up 40%.

If you take a look at the chart for China Ming Yang Wind Power Group, you'll notice that this stock has been uptrending strong for the last month and change, with shares soaring higher from its low of $1.17 to its recent super spike high of $2.13 a share. During that uptrend, shares of MY have been consistently making higher lows and higher highs, which is bullish technical price action. Shares of MY have now started to bounce off its 200-day moving average at $1.43 a share and it's starting to break out above some near-term overhead resistance at $1.70 a share with decent volume. Volume today has registered 195,000 shares, which is just a bit below its three-month average action of 200,055 shares.