Stock Quotes in this Article: CPST, FCEL, GTE, HNR, PLUG, RMBS

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.

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Just take a look at some of the hot movers in the under-$10 complex from Thursday, including BioFuel Energy (BIOF), which is ripping higher by 33%; LiveDeal (LIVE), which is soaring higher by 27%; SGOCO Group (SGOC), which is jumping to the upside by 17%; and GenVec (GNVC), which is moving higher by 7%. 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 made a huge run after I featured it was technology solutions player Rambus (RMBS), which I highlighted in Feb. 20's "5 Stocks Under $10 Ready to Explode" at $1.27 per share. I mentioned in that piece that shares of Rambus of were starting to spike higher off its 50-day moving average at that time of $9.12 a share. That spike was beginning to push shares of RMBS within range of triggering a near-term breakout trade above some key overhead resistance levels at $9.73 to $9.81 a share.

Guess what happened? Shares of RMBS didn't wait long to trigger that breakout, since the stock busted out above those levels a few weeks later. This stock has gone on to make an incredible move higher even during the recent market decline, with shares of RMBS tagging an intraday high today of $12.50 a share. That represents a massive gain of well over 30% from the time I featured this stock. The best part about this move is the clean uptrend you'll see on the chart for RMBS as the stock marched higher over the last few months.

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.

FuelCell Energy


One under-$10 alternative energy player that's starting to move within range of triggering a big breakout trade is FuelCell Energy (FCEL), which designs, manufactures, sells, installs, operates and services stationary fuel cell power plants for distributed baseload power generation. This stock is off to a monster start so far in 2014, with shares up a whopping 70%.

If you take a glance at the chart for FuelCell Energy, you'll notice that this stock has pulled back sharply over the last month and change, with shares falling from its high of $4.74 to its recent low of $2.25 a share. During that downtrend, shares of FCEL have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of FCEL have formed a double bottom chart pattern at $2.29 to $2.25 a share over the last few weeks right above its 50-day moving average. Shares of FCEL are now starting to uptick a bit and trend within range of triggering a big breakout trade.

Traders should now look for long-biased trades in FCEL if it manages to break out above some near-term overhead resistance at $2.50 a share and then once it takes out more key overhead resistance levels at $2.81 to $2.94 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 24.26 million shares. If that breakout triggers soon, then FCEL will set up to re-test or possibly take out its next major overhead resistance levels at $3.25 to $3.75 a share.

Traders can look to buy FCEL off weakness to anticipate that breakout and simply use a stop that sits right below those double bottom support levels at $2.29 to $2.25 a share or right around $2 a share. One can also buy FCEL 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.

Plug Power


Another under-$10 alternative energy player that's starting to trend within range of hitting a big breakout trade is Plug Power (PLUG), which is engaged in the design, development, manufacture and commercialization of fuel cell systems for the industrial off-road markets worldwide. This stock has been an absolute favorite play for the bulls in 2014, with shares up a whopping 368%.

If you take a look at the chart for Plug Power, you'll notice that this stock has been trending sideways and consolidating over the last month, with shares moving between $6.21 on the downside and $8.48 on the upside. That sideways trend has been occurring right above PLUG's 50-day moving average that's currently at $5.97 a share. Shares of PLUG are now starting spike higher and trend within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern.

Market players should now look for long-biased trades in PLUG if it manages to break out above some near-term overhead resistance levels at $7.70 to $8.10 a share and then once it takes out more key overhead resistance at $8.48 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 43.84 million shares. If that breakout materializes soon, then PLUG will set up to re-test or possibly take out its 52-week high at $11.72 a share.

Traders can look to buy PLUG off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $6.53 a share or right below its 50-day moving average of $5.97 a share. One can also buy PLUG 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.

Capstone Turbine


One under-$10 industrial electric equipment player that's starting to move within range of triggering a near-term breakout trade is Capstone Turbine (CPST), which engages in developing, manufacturing, marketing and servicing microturbine technology solutions for use in stationary distributed power generation applications worldwide. This stock is off to a hot start in 2014, with shares up sharply by 65%.

If you consult the chart for Capstone Turbine, you'll see that this stock recently pulled back off its 52-week high at $2.60 to its recent low of $1.91 a share. That low took shares of CPST right below its 50-day moving average and the stock has subsequently started to bounce higher back above that key technical level. Shares of CPST are now starting to uptick and move within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in CPST if it manages to break out above some near-term overhead resistance levels at $2.22 to $2.32 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 7.72 million shares. If that breakout gets underway soon, then CPST will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $2.60 a share.

Traders can look to buy CPST off weakness to anticipate that breakout and simply use a stop that sits right below that recent low of $1.91 a share. One can also buy CPST off strength once it starts to smash above those key resistance levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Harvest Natural Resources


Another under-$10 independent energy player that's starting to push within range of triggering a big breakout trade is Harvest Natural Resources (HNR), which engages in the acquisition, exploration, development, production and disposition of oil and natural gas properties. This stock has been hit by the sellers over the last six months, with shares off by 15.6%.

If you take a glance at the chart for Harvest Natural Resources, you'll notice this stock has just started to trend back above both its 50-day and 200-day moving averages, which is bullish technical price action. That trend is quickly starting to push shares of HNR 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 in HNR if it manages to break out above some key near-term overhead resistance levels at $4.75 to $5 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 312,623 shares. If that breakout starts soon, then HNR will set up to re-test or possibly take out its next major overhead resistance levels $5.50 to its 52-week high at $6.08 a share. Any high-volume move above $6.08 will then give HNR a chance to tag $7 a share.

Traders can look to buy HNR off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $4.20 a share or around $45 a share. One can also buy HNR 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.

Gran Tierra Energy


One final under-$10 independent energy player that's starting to trend within range of triggering a big breakout trade is Gran Tierra Energy (GTE), which  is engaged in the acquisition, exploration, development and production of oil and gas properties in Colombia, Argentina, Peru and Brazil. This stock is up a bit so far in 2014, with shares higher by 4.9%.

If you take a look at the chart for Gran Tierra Energy, you'll notice that this stock have been uptrending over the last month and change, with shares moving higher from its low of $6.73 to its intraday high of $7.68 a share. During that move, shares of GTE have been making mostly higher lows and higher highs, which is bullish technical price action. Shares of GTE are starting to break out today above some near-term overhead resistance at $7.64 a share. That move is quickly pushing shares of GTE within range of triggering a much bigger breakout trade.

Traders should now look for long-biased trades in GTE if it manages to break out above some near-term overhead resistance levels at $7.73 to $7.88 a share and then once it clears its 52-week high at $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 action of 981,956 shares. If that breakout kicks off soon, then GTE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $10 to $11 a share.

Traders can look to buy GTE off weakness to anticipate that breakout and simply use a stop that sits just below its 50-day at $7.33 or its 200-day at $7.08 a share. One can also buy GTE 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.

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.