Stock Quotes in this Article: JASO, SOL, RGLS, VMEM, EVRY, 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 RADA Electronics (RADA), which is exploding higher by 81%; Mitek Systems (MITK), which is soaring by 46%; Acorn International (ATV), which is ripping higher by 41%; and Technical Communications (TCCO), which is surging by 30%. 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 specialty pharmaceutical player Agile Therapeutics (AGRX), which I featured in Aug. 28's "5 Breakout Stocks Under $10 Set to Soar" at around $7.50 per share. I mentioned in that piece that shares of Agile Therapeutics recently formed a double bottom chart pattern at $5.56 to $5.80 a share. Following that bottom, shares of AGRX had started to uptrend and spike back above its 50-day moving average. That move was quickly pushing shares of AGRX within range of triggering a near-term breakout trade above some overhead resistance levels at $7.81 to $8 a share.

Guess what happened? Shares of Agile Therapeutics started to trigger that breakout the following trading session with decent upside volume flows. Volume on Sept. 2 registered 155,700 shares, which is well above its three month average action of 118,500 shares. Shares of AGRX have ripped higher since the volume started to come in as it broke above those resistance levels. This stock tagged an intraday high of $10.13 a share on Thursday, which represents a large gain of over 30% in just a few trading sessions. As you can see, trading low-priced stocks that break out with volume can produce large returns in very short time frames.

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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EveryWare Global


One under-$10 consumer goods player that's starting to trend within range of triggering a major breakout trade is EveryWare Global (EVRY), which provides tabletop and food preparation products for the consumer, foodservice, and specialty markets. This stock has been destroyed by the sellers so far in 2014, with shares off huge by 68%.

If you take a glance at the chart for EveryWare Global, you'll notice that this stock been uptrending over the last month, with shares moving higher from its low of $1.95 to its recent high of $3.01 a share. During that move, shares of EVRY have been making mostly higher lows and higher highs, which is bullish technical price action. That move also has shares of EVRY holding above or near its 50-day moving average during that trend.

Traders should now look for long-biased trades in EVRY if it manages to break out above some near-term overhead resistance levels at $3.01 to $3.19 a share and then above more resistance at $3.30 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 743,292 shares. If that breakout materializes soon, then EVRY will set up to re-test or possibly take out its next major overhead resistance levels $3.94 to its 200-day moving average of $4.52 a share.

Traders can look to buy EVRY off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $2.26 to right around $2 a share. One can also buy EVRY 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.

Read More: 5 Low-Priced Stocks to Trade for Big Gains

JA Solar Holdings

Another under-$10 solar player that's starting to move within range of triggering a near-term breakout trade is JA Solar Holdings (JASO), which is engaged in the design, development, production, marketing, and sale of photovoltaic solar cells and solar power products based on crystalline silicon technologies. This stock has moved modestly higher so far in 2014, with shares up around 8%.

If you take a look at the chart for JA Solar Holdings, you'll see that this stock is just starting to trend back above both its 50-day moving average of at $9.53 a share and its 200-day moving average at $9.84 a share with decent upside volume flows. This move is starting to push shares of JASO within range of triggering a near-term breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades is JASO if it manages to break out above some near-term overhead resistance levels at $10.09 to $10.37 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 2.36 million shares. If that breakout kicks off soon, then JASO will set up to re-test or possibly take out its next major overhead resistance levels at $10.98 to $11.31 a share, or even $11.68 a share.

Traders can look to buy JASO off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $9.53 a share. One can also buy JASO 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.

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ReneSola

One under-$10 solar player that's beginning to trend within range of triggering a big breakout trade is ReneSola (SOL) which manufactures and sells various solar power products. This stock has been trending hot over the last three months, with shares up sharply by 31%.

If you take a glance at the chart for ReneSola, you'll see that this stock has been uptrending over the last month, with shares moving higher from its low of $2.29 to its recent high of $3.02 a share. During that move, shares of SOL have been making mostly higher lows and higher highs, which is bullish technical price action. This move has now pushed shares of SOL back above its 50-day moving average of $2.64 a share. That move is now starting to push shares of SOL 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 SOL if it manages to break out above some near-term overhead resistance levels at $3 to $3.02 a share and then above its 200-day at $3.16 to more resistance at $3.22 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 volume of 1.53 million shares. If that breakout develops soon, then SOL will set up to re-test or possibly take out its next major overhead resistance levels at $3.60 to $4 a share, or even $4.37 to $4.50 a share.

Traders can look to buy SOL off weakness to anticipate that breakout and simply use a stop that sits right around its 50-day moving average of $2.64 share or near more support at $2.50 a share. One can also buy SOL 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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Violin Memory

Another under-$10 data storage devices player that's starting to move within range of triggering a near-term breakout trade is Violin Memory (VMEM), which develops and supplies memory-based storage systems to bring storage performance in line with high-speed applications, servers, and networks worldwide. This stock has been in play with the bulls over the last three months, with shares up sharply by 26%.

If you look at the chart for Violin Memory, you'll see that this stock recently formed a major bottoming chart pattern, since VMEM found buying interest in August each time it pulled back to around $3.60 to $3.70 a share. Following that bottom, shares of VMEM have started to spike sharply higher back above both its 200-day moving average of $3.90 to its 50-day moving average of $4.01 a share. That move is now quickly pushing shares of VMEM within range of triggering near-term breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades in VMEM if it manages to break out above some near-term overhead resistance at $4.68 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 action of 871,791 shares. If that breakout hits soon, then VMEM will set up to re-test or possibly take out its next major overhead resistance levels at $5.48 to $6.21 a share.

Traders can look to buy VMEM off weakness to anticipate that breakout and simply use a stop that sits right around its 200-day moving average of $3.90 a share. One can also buy VMEM 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.

Read More: 3 Stocks Spiking on Big Volume

Regulus Therapeutics

One final under-$10 biotechnology player that's trending very close to triggering a big breakout trade is Regulus Therapeutics (RGLS), which focuses on the discovery and development of drugs that target microRNAs for the treatment of various diseases in the U.S. This stock has been hit hard by the sellers over the last six months, with shares off big by 35%.

If you take a glance at the chart for Regulus Therapeutics, you'll notice that this stock has been trending sideways and consolidating for the last two months, with shares moving between $6.13 on the downside and $7.46 on the upside. Shares of RGLS are now starting to trend back above its 50-day moving average at $7.01 a share with above-average volume. Volume so far in Thursday has already registered over 79,000 shares, which is above its three-month average action of 64,706 shares. That move is quickly pushing shares of RLGS within range of triggering a big breakout trade above the upper-end of its recent sideways trading price action.

Traders should now look for long-biased trades in RGLS if it manages to break out above some near-term overhead resistance levels at $7.31 to $7.46 a share and then above its 200-day moving average of $7.64 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 64,706 shares. If that breakout begins soon, then RGLS will set up re-test or possibly take out its next major overhead resistance levels at $8.32 to $8.45 a share. Any high-volume move above those levels will then give RGLS a chance to tag its next major overhead resistance levels at $9 to $9.23, or even $10 a share.

Traders can look to buy RGLS off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $6.63 to $6.55 a share. One can also buy RGLS 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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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.