Stock Quotes in this Article: CAMT, CYTR, TA, ATRS, NEO, AGRX

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 SGOCO Group (SGOC), which is exploding higher by 67%; RadioShack (RSH), which is ripping higher by 31%; On Track Innovations (OTIV), which is jumping higher by 12.5%; and RXi Pharmaceuticals (RXII), which is surging higher by 11.8%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

One example of an under-$10 stock I flagged recently that exploded to the upside was TravelCenters of America (TA), which I featured in Aug. 8's "5 Breakout Stocks Under $10 Set to Soar" at around $9 per share. I mentioned in that piece that shares of TravelCenters of America had 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. That uptrend was starting to push shares of TA within range of triggering a major breakout trade above some key near-term overhead resistance levels at $9.20 to $9.40 a share.

Guess what happened? Shares of TravelCenters of America triggered that breakout a few trading sessions later with strong upside volume flows. Volume on August 19, shares of TA ripped sharply to the upside tagging an intraday high of $9.97 with heavy upside volume flows. Volume on that day registered over 697,000 shares, which is well above its three-month average action of 281,926 shares. This stock has continued to uptrend since taking out those resistance levels with shares of TA tagging a recent high of $11.84 a share. That represents a monster gain of 30% in just a few weeks for anyone who loaded up on TA in anticipation of that breakout.

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.

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

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Antares Pharma


One under-$10 specialty pharmaceutical player that's starting to move within range of triggering a big breakout trade is Antares Pharma (ATRS), which focuses on developing and commercializing self-administered parenteral pharmaceutical products and technologies worldwide. This stock has been hammered lower by the bears so far in 2014, with shares sharply lower by 53%.

If you take a glance at the chart for Antares Pharma, you'll see that this stock has been trending sideways and consolidating over the last month, with shares moving between $1.87 on the downside and $2.20 on the upside. Shares of ATRS are now starting to bounce modestly higher right off some near-term support at $2 a share. That bounce is starting to push shares of ATRS 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 ATRS if it manages to break out above some near-term overhead resistance levels at $2.20 a share to its 50-day moving average of $2.31 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 1.29 million shares. If that breakout develops soon, then ATRS will set up to re-test or possibly take out its next major overhead resistance levels $2.87 to $3.20 a share, or even its 200-day moving average of $3.44 a share.

Traders can look to buy ATRS off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $2 to $1.87 a share. One can also buy ATRS 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.

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Camtek


Another under-$10 technology player that's starting to trend within range of triggering a major breakout trade is Camtek (CAMT), which designs, develops, manufactures, and markets automatic optical inspection systems and related products This stock has been trending strong over the last three months, with shares up sharply higher by 28%.

If you take a look at the chart for Camtek, you'll notice that this stock has been uptrending over the last few weeks, with shares moving higher from its low of $3.45 to its recent high of $4.38 a share. During that uptrend, shares of CAMT have been consistently making higher lows and higher highs, which is bullish technical price action. Shares of CAMT have been riding above both its 50-day and 200-day moving averages for most of that move. This stock is now quickly approaching a major breakout trade above some key near-term overhead resistance levels.

Market players should now look for long-biased trades is CAMT if it manages to break out above some near-term overhead resistance levels at $4.35 to $4.38 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 868,998 shares. If that breakout begins soon, then CAMT will set up to re-test or possibly take out its next major overhead resistance levels at $5.14 to $5.84 a share, or even its 52-week high at $6.43 a share.

Traders can look to buy CAMT off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $3.69 a share. One can also buy CAMT 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.

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Agile Therapeutics


One under-$10 specialty pharmaceutical player that's quickly moving within range of triggering a near-term breakout trade is Agile Therapeutics (AGRX) which focuses on the development and commercialization of prescription contraceptive products for women. This stock has been trending hot so far in 2014, with shares up big by 41%.

If you take a glance at the chart for Agile Therapeutics, you'll see that this stock recently formed a double bottom chart pattern at $5.56 to $5.80 a share. Following that bottom, shares of AGRX have been uptrending very strong, with shares moving higher from $5.80 to its recent high of $8 a share. During that move, shares of AGRX have been making mostly higher lows and higher highs, which is bullish technical price action. This stock has now started to spike higher right off its 50-day moving average of $7.53 a share. That spike is quickly pushing shares of AGRX within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in AGRX if it manages to break out above some near-term overhead resistance levels at $7.81 to $8 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 volume of 126,062 shares. If that breakout materializes soon, then AGRX will set up to re-test or possibly take out its next major overhead resistance levels at $9 to $9.50 a share. Any high-volume move above those levels will then give AGRX a chance to tag $10 to $11 a share.

Traders can look to buy AGRX off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $7.06 a share. One can also buy AGRX 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.

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Neonode


Another under-$10 technology player that's starting to trend within range of triggering a near-term breakout trade is Neonode (NEON), which develops and licenses user interfaces and optical infrared touch technology solutions. This stock has been destroyed over the last six months, with shares down huge by 58%.

If you look at the chart for Neonode, you'll see that this stock has been trending sideways and consolidating for the last two months, with shares moving between $2.44 on the downside and $3.50 on the upside. This consolidation chart pattern has developed after shares of NEON came out of a nasty downtrend that took the stock lower from $8 a share back in March to that recent $2.44 low. Shares of NEON are now starting to flirt with its 50-day moving average and the stock is starting to push within range of triggering a near-term breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades in NEON if it manages to break out above some near-term overhead resistance levels at $3.15 to $3.28 a share and then above more resistance levels at $3.37 to $3.50 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 1 million shares. If that breakout gets underway soon, then NEON will set up to re-test or possibly take out its next major overhead resistance levels at $4 to $4.23 a share. Any high-volume move above those levels will then give NEON a chance to tag $4.50 to its 200-day moving average of $4.96 a share.

Traders can look to buy NEON off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $2.81 to $2.58 a share. One can also buy NEON 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.

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CytRx


One final under-$10 biotechnology player that's trending very close to triggering a big breakout trade is CytRx (CYTR), which is a biopharmaceutical research and development company specializing in oncology. This stock has been hit hard by the sellers over the last six months, with shares off sharply by 42%.

If you take a glance at the chart for CytRx, you'll notice that this stock has recently formed a double bottom chart pattern at $3.08 to $3.05 a share. Following that bottom, shares of CYTR have started to rebound and trend higher off those key near-term support levels. That move is quickly pushing shares of CYTR 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 CYTR if it manages to break out above some near-term overhead resistance levels at $3.42 to its 50-day moving average of $3.59 and then above more resistance at $3.74 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 1.38 million shares. If that breakout gets set off soon, then CYTR will set up re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $4.31 to $4.50 a share. Any high-volume move above those levels will then give CYTR a chance to tag $5 to $5.50 a share.

Traders can look to buy CYTR off weakness to anticipate that breakout and simply use a stop that sits right around those double bottom support levels. One can also buy CYTR off strength once it starts to blast 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.