5 Stocks Under $10 Setting Up to Break Out
Just take a look at some of the hot movers in the under-$10 complex from Wednesday, including Mindspeed Technologies (MIND) , which skyrocketed 28%; Office Depot (ODP) , which soared by 21%; GTx (GTXI) , which ripped higher by 19%; and Coffee Holding (JVA) , which finished up 18.5%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.
One low-priced stock that I recently flagged that went on to skyrocket to the upside was Neuralstem (CUR) . On Aug. 31, I highlighted CUR in " 5 Stocks Poised for Big Breakouts " at around 60 cents per share. From a technical standpoint , I was bullish on CUR because I liked the bullish upside volume patterns I was seeing, and I liked how the stock was quickly approaching some key breakout levels. I mentioned that CUR was setting up to trigger a major breakout trade over 58 cents per share, and traders should look to buy if off any weakness to anticipate that move.
Guess what happened? Shares of CUR did trigger that breakout over 58 cents with strong volume, and as I write this, the stock is exploding again and hitting $1.08 a share. That's a massive move the upside in just a few weeks from my call, and the stock never looked back once after it cleared 58 cents per share with high volume. Shares of CUR are now breaking out again above 99 cents to $1 a share, so traders should look for a re-test of its next major past resistance levels at $1.20 to $1.30 a share soon.
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.
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.