Stock Quotes in this Article: SHOR, TA, YGE, DCIX, ANDC

DELAFIELD, Wis. (Stockpickr) -- 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 sound risk management are banking ridiculous coin on a regular basis.

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Just take a look at some of the big movers in the under-$10 complex from Thursday, including Lime Energy (LIME), which exploded higher by162%; Viggle (VGGL), which also exploded higher by 84%; Richmont Mines (RIC), which ripped higher by 20%; and Rock Creek Pharmaceuticals (RCPI), which trended up by 20%. 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.

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.

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With that in mind, here's a look at several under-$10 stocks that look poised to potentially trade higher from current levels.

Yingli Green Energy


One under-$10 solar player that's starting to move within range of triggering a big breakout trade is Yingli Green Energy (YGE), which designs, develops, manufacture, markets, sells, and installs photovoltaic products in the People's Republic of China. This stock has been hit hard by the bears so far in 2014, with shares down sharply by 33%.

If you take a glance at the chart for Yingli Green Energy, you'll see that this stock recently formed a near-term bottoming chart pattern, since shares found buying interest each time it pulled back to around $3.10 a share. Shares of YGE are now starting to uptick a bit and the stock is challenging its 50-day moving average of $3.38 a share. That move is quickly pushing shares of YGE within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in YGE if it manages to break out above some near-term overhead resistance levels at $3.50 to $3.65 a share and then once it clears more resistance at $3.85 to $4.04 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 4.79 million shares. If that breakout hits soon, then YGE will set up to re-test or possibly take out its next major overhead resistance levels $4.65 to $4.88 a share, or even $5 a share.

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Traders can look to buy YGE off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $3.10 to $3.08 a share. One can also buy YGE 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.

Diana Containerships


Another under-$10 shipping player that's starting to trend within range of triggering a big breakout trade is Diana Containerships (DCIX), which operates in the seaborne transportation industry. It owns and operates containerships. This stock has been hit hard by the sellers so far in 2014, with shares off sharply by 37%.

If you take a look at the chart for Diana Containerships, you'll notice that this stock recently formed a triple bottom chart pattern at $2.42, $2.40 and $2.41 a share. Following that bottom, shares of DCIX have now started to uptick and flirt with its 50-day moving average at $2.55 a share. This move is starting to push shares of DCIX 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 is DCIX if it manages to break out above some key overhead resistance levels at $2.55 to $2.59 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 283,239 shares. If that breakout kicks off soon, then DCIX will set up to re-test or possibly take out its next major overhead resistance levels at $2.70 to $2.85 a share. Any high-volume move above those levels will then give DCIX a chance to tag its next major overhead resistance levels at $3 to $3.50 a share.

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Traders can look to buy DCIX off weakness to anticipate that breakout and simply use a stop that sits right below those triple bottom support levels or near its 52-week low at $2.38 a share. One can also buy DCIX 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.

Audience


One under-$10 technology player that looks ready to make a sharp move to the upside is Audience (ADNC), which provides voice and audio solutions for mobile devices in Korea, China, the U.S. and internationally.  This stock has been under heavy selling pressure over the last three months, with shares off by 28%.

If you take a glance at the chart for Audience, you'll see that this stock recently gapped down sharply lower from around $10 to its new 52-week low at $7.80 with monster downside volume. Following that move, shares of ADNC have now started to rebound off that low with decent upside volume flows and it's starting to trend into that recent gap-down-day zone that started near $10 a share. This move could be signaling that shares of ADNC are setting up to fill some more of that gap and trend higher.

Traders should now look for long-biased trades in ADNC if it manages to take out Thursday's intraday high of $8.45 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 179,789 shares. If that move gets started soon, then ADNC will set up to re-fill some of that previous gap-down-day zone that started near $10 a share.

Traders can look to buy ADNC off weakness to anticipate that move and simply use a stop that sits right below some key near-term support at $8 a share or around its 52-week low of $7.80 a share. One can also buy ADNC off strength once it starts to bust above $8.45 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Read More: 5 Tech Stocks Ready to Move

ShoreTel


Another under-$10 communications equipment player that's starting to trend within range of triggering a big breakout trade is ShoreTel (SHOR), which provides Internet protocol unified communications systems for enterprises in the U.S. and internationally. This stock has been hammered lower by the bears so far in 2014, with shares off sharply by 35%.

If you look at the chart for ShoreTel, you'll see that this stock has just started to bounce higher right above some near-term support at $5.80 a share with high volume. Volume on Thursday registered over 750,000 shares, which is well above its three-month average action of 509,383 a share. This spike is starting to push shares of SHOR within range of triggering a big breakout trade above a key downtrend line.

Market players should now look for long-biased trades in SHOR if it manages to break out above some near-term overhead resistance levels at $6.25 to $6.47 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 509,383 shares. If that breakout kicks off soon, then SHOR will set up to re-test or possibly take out its next major overhead resistance levels at $6.86 to $7.21 a share, or even its 200-day moving average of $7.67 to $8 a share.

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Traders can look to buy SHOR off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at around $5.80 a share. One can also buy SHOR 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.

TravelCenters of America


One final under-$10 service player that's trending very close to triggering a major breakout trade is TravelCenters of America (TA), which operates and franchises travel centers primarily along the U.S. interstate highway system. This stock has been trending strong over the last three months, with shares up sharply by 20%.

If you take a glance at the chart for TravelCenters of America, you'll notice that this stock has been uptrending strong for the last three months, with shares moving higher from its low of $7.03 to its recent high of $9.38 a share. During that uptrend, shares of TA have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TA 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 TA if it manages to break out above some near-term overhead resistance levels at $9.20 to $9.40 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 221,297 shares. If that breakout begins soon, then TA will set up re-test or possibly take out its next major overhead resistance levels at $10.42 to its 52-week high at $11.17 a share.

Traders can look to buy TA off weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support levels at its 50-day moving average of $8.69 to its 200-day moving average of $8.49 a share. One can also buy TA off strength once it starts to push above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

To see more hot under-$10 equities, check out the Stocks Under $10 Setting Up to Explode portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.