Delafield, Wis. (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 big movers in the under-$10 complex from Thursday, including BioFuel (BIOF), which is exploding higher by over 80%; KiOR (KIOR), which soaring higher by 30%; J.C. Penney (JCP), which is ripping to the upside by 24%; and Clean Diesel Technologies (CDTI), which is spiking sharply higher by 13%. 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 recently exploded to the upside was battery player Highpower International (HPJ), which I highlighted in Feb. 20's "5 Stocks Under $10 Ready to Explode" at around $2.80 per share. I mentioned in that piece that shares of Highpower International had been consolidating and trending sideways for the last four months, with the stock moving between $2.02 on the downside and $3.45 on the upside. That chart pattern had started to tighten up and the stock was quickly moving within range of triggering a big breakout trade above some resistance levels at $2.88 to $2.89 a share.

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Guess what happened? Shares of Highpower International didn't wait long to trigger that breakout, since the stock started to challenge those levels the following trading session. Then on Feb. 25 shares of HPJ exploded to the upside with monster upside volume, and the stock tagged an intraday high of $4.98 a share. That represents a gain of over 70% in just a few trading sessions for anyone who bought HPJ in anticipation of the breakout. As you can see, trading breakouts can produce monster gains in very short timeframes when volume buyers move into the stock.

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.

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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.

Ku6 Media


One under-$10 technology player that's currently trending within range of triggering a big breakout trade is Ku6 Media (KUTV), which operates as an online video company in the People's Republic of China. This stock is off to a strong start in 2014, with shares up nicely by 21%.

If you take a glance at the chart for Ku6 Media, you'll notice that this stock has been uptrending very strong for the last four months, with shares moving higher from its low of $2.12 to its recent high of $3.68 a share. During that move, shares of KUTV have been making mostly higher lows and higher highs, which is bullish technical price action. Shares of KUTV are spiking higher today right above its 50-day moving average of $3.04 a share. That spike is starting to push shares of KUTV within range of triggering a big breakout trade.

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Traders should now look for long-biased trades in KUTV if it manages to break out above some near-term overhead resistance level at $3.68 a share to its 52-week high at $3.90 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 160,807 shares. If that breakout kicks off soon, then KUTV will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $5 to $6 a share.

Traders can look to buy KUTV off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $3.04 a share. One can also buy KUTV 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.

Ascent Solar Technologies


An under-$10 alternative energy player that's starting to push within range of triggering a big breakout trade is Ascent Solar Technologies (ASTI), which designs and manufactures photovoltaic integrated consumer electronics and portable power applications for commercial and military users. This stock has been under selling pressure over the last three months, with shares down by 12.2%.

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If you consult the chart for Ascent Solar Technologies, you'll see that this stock has been downtrending badly for the last four months, with shares moving lower from its high of $1.16 to its recent low of 61 cents per share. During that downtrend, shares of ASTI have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of ASTI have now started to rebound higher off that 61 cents per share and it's quickly moving within range of breaking out above a key downtrend line.

Market players should now look for long-biased trades in ASTI if it manages to break out above some near-term overhead resistance levels at 72 cents to 75 cents per 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 451,943 shares. If that breakout triggers soon, then ASTI will set up to re-test or possibly take out its next major overhead resistance levels at around 80 cents to its 200-day moving average at 82 cents per share. Any high-volume move above those levels will then give ASTI a chance to tag 85 to 90 cents per share, or even $1 a share.

Traders can look to buy ASTI off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at 66 to 65 cents per share. One can also buy ASTI 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.

Cleveland BioLabs


One under-$10 biotechnology player that's quickly moving within range of triggering a major breakout trade is Cleveland BioLabs (CBLI), which engages in the research, development and commercialization of products that have the potential to treat cancer, reduce death from total body irradiation and counteract the genotoxic effects of radio- and chemotherapies for oncology patients. This stock has been hammered by the bears over the last six months, with shares down sharply by 58%.

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If you take a look at the chart for Cleveland BioLabs, you'll notice that this stock been consolidating and trending sideways for the last month, with shares moving between 63 cents per share on the downside and 84 cents per share on the upside. Shares of CBLI are now starting to spike higher off some near-term support at 66 cents per share and are quickly moving within range of triggering a major breakout trade above the upper-end of its recent sideways trading chart pattern.

Traders should now look for long-biased trades in CBLI if it manages to break out above some near-term overhead resistance levels at 72 cents per share and then once it takes out its gap-down-day high of 84 cents per 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 468,969 shares. If that breakout materializes soon, then CBLI will set up to re-fill some of its previous gap-down-day zone from January that started above $1.10 a share. If CBLI gets into that gap with volume, then this stock could easily tag its 50-day moving average at 92 cents per share to $1 a share.

Traders can look to buy CBLI off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at 66 cents per share or down near 63 cents per share. One can also buy CBLI off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

BioDelivery Sciences International


Another under-$10 specialty pharmaceutical player that's quickly trending within range of triggering a big breakout trade is BioDelivery Sciences International (BDSI), which  engages in the development and commercialization of therapeutics in the areas of pain management and oncology supportive care. This stock has been on fire over the last six months, with shares up a whopping 101%.

If you take a glance at the chart for BioDelivery Sciences International, you'll notice that this stock is spiking sharply higher today by over 6% right off some near-term support at $8.58 a share. That spike is quickly pushing shares of BDSI within range of triggering a big breakout trade above some key overhead resistance levels that have acted as a wall for the last month.

Market players should now look for long-biased trades in BDSI if it manages to break out above some near-term overhead resistance levels at $9.36 a share to its 52-week high at $9.50 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 volume of 760,931 shares. If that breakout gets underway soon, then BDSI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $12 to $13 a share.

Traders can look to buy BDSI off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $8.58 or at $8 a share. One can also buy BDSI 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.

Real Goods Solar


One final under-$10 stock idea that looks poised to spike sharply higher soon is Real Goods Solar (RGSE), which operates as a residential and commercial solar energy engineering, procurement and construction company in the U.S. This stock is off to a hot start in 2014, with shares up sharply by 27%.

If you consult the chart for Real Goods Solar, you'll see that this stock has been downtrending a bit over the last month and change, with shares moving lower from its high of $4.70 a share to its recent low of $3.30 a share. During that downtrend, shares of RGSE have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of RGSE have now started to tighten up and trend inside of a sideways trading pattern for the last few weeks right above its 50-day moving average. This stock is now starting to uptick higher and move within range of triggering a big breakout trade above a key downtrend line.

Traders should now look for long-biased trades in RGSE if it manages to break out above some near-term overhead resistance levels at $4 to $4.20 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 2.96 million shares. If that breakout kicks off soon, then RGSE will set up re-test or possibly take out its next major overhead resistance levels at $4.40 to $4.70 a share. Any high-volume move above those levels will then give RGSE a chance to make a run at $5 to $5.50 a share.

Traders can look to buy RGSE off weakness to anticipate that breakout and simply use a stop that sits just below its 50-day moving average of $3.61 a share or near more near-term support at $3.30 a share. One can also buy RGSE off strength once it starts to punch 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.