Stock Quotes in this Article: AMD, CERS, CETV, JOEZ, MTL

 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 Wednesday, including Inovio Pharmaceuticals (INO), which soared higher by 24%; Neonode (NEON), which ripped higher by 23.8%; Molycorp (MCP), which spiked higher by 16%; and Avalon Rare Metals (AVL), which trended up 15.2%. 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 skyrocketed higher was wireless communication carrier Leap Wireless (LEAP), which I highlighted in June 13's "5 Stocks Under $10 Set to Soar" at $5.90 a share. I mentioned in that piece that shares of LEAP had been consolidating and trending sideways for the last two months, with shares trading between $5.31 on the downside and $6.28 on the upside. This stock had just started to trend back above its 50-day moving average and it was quickly moving within range of triggering a near-term breakout trade above the upper-end of its sideways trading chart pattern.

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Guess what happened? Shares of LEAP triggered that breakout the following week as the stock took out its 200-day moving average and some key overhead resistance levels at $6.25 to $6.28 a share with solid upside volume. Since triggering that move, shares of LEAP have continued uptrend with the stock hitting a recent high of $7.86 a share. That represents a gain of just over 30% for anyone who loaded up on shares of LEAP in anticipation of the breakout. Shares of LEAP are now closing in on another major breakout trade, since the stock is trading very close to its 52-week high at $8.16 a share. If that level gets taken out soon with volume, then this stock could easily tag $9 to $10 a share.

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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I'm not as eager to recommend investing long-term in stocks that trade less than $10 a share because these names can be very speculative, and the odds for picking the long-term winners aren't great. But I definitely love to trade stocks that are priced below $10. I like to view them as a trading vehicle with lots of volatility and lots of upside when the trade is timed right.

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.

Cerus

One under-$10 stock that looks ready to trigger a near-term breakout trade is Cerus (CERS), a biomedical products company focused on commercializing the Intercept Blood System to enhance blood safety. This stock is off to a strong start in 2013, with shares up 45%.

If you take a look at the chart for Cerus, you'll notice that this stock is has just started to uptrend after hitting a recent low of $4.16, with shares making higher lows and higher highs, which is bullish technical price action. This move is quickly pushing CERS within range of triggering a near-term breakout trade.

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Traders should now look for long-biased trades in CERS if it manages to break out above some near-term overhead resistance levels at $4.76 to its 50-day at $4.82 a share and then once it takes out $4.83 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 588,897 shares. If that breakout triggers soon, then CERS will set up to re-test or possibly take out its next major overhead resistance levels at $5.42 to its 52-week high at $5.58 a share. Any high-volume move above its 52-week high could then send shares of CERS north of $6.

Traders can look to buy CERS off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $4.34 to $4.16 a share. One can also buy CERS off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Advanced Micro Devices

Another under-$10 stock that's trending within range of triggering a major breakout trade is Advanced Micro Devices (AMD), a semiconductor company with manufacturing, research and development, and sales and administrative facilities throughout the world. This stock has been on fire so far in 2013, with shares up sharply by 82%.

Shares of AMD are in hot demand today after Bank of America upgraded the stock from underperform to buy citing the company is picking up market share. The firm issued a price target of $6 per share and that move has already pushed AMD shares up 10% on heavy volume in early trading.

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If you take a look at the chart for Advanced Micro Devices, you'll notice that this has been trending sideways for the last two months, with shares trading between $3.66 on the downside and $4.42 on the upside. Shares of AMD are now bouncing sharply off its 50-day moving average of $3.97 a share and are quickly moving within range of breaking out above the upper-end of its recent sideways trading chart pattern.

Market players should now look for long-biased trades in AMD if it manages to break out above some near-term overhead resistance levels at $4.42 to its 52-week high at $5.07 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 27.36 million shares. If that breakout triggers soon, then AMD will set up to re-test or possibly take out its next major overhead resistance levels at $6 to $6.50 a share. Any high-volume move above those levels could then send AMD north of $7 a share.

Traders can look to buy AMD off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average at $3.97, or right below more support at $3.80 a share. One can also buy AMD 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.

Joe's Jeans

One under-$10 name that's starting to push within range of triggering a near-term breakout trade is Joe's Jeans (JOEZ), which is engaged in the design, development and worldwide marketing of apparel products. This stock has been in beast mode in 2013, with shares up sharply by 68%.

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If you take a look at the chart for Joe's Jeans, you'll notice that this stock has recently formed a double bottom chart pattern at $1.51 to $1.54 a share. Following that bottom, shares of JOEZ have started to uptrend strong, and the stock is now moving within range of triggering a near-term breakout trade. Shares of JOEZ are also closing in on its 50-day moving average of $1.69 a share, which the stock has hit this morning.

Traders should now look for long-biased trades in JOEZ if it manages to break out above its 50-day of $1.69 and then once it clears more near-term resistance at $1.72 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 660,805 shares. If that breakout triggers soon, then JOEZ will set up to re-test or possibly take out its next major overhead resistance levels at $1.97 to its 52-week high of $2.04 a share. Any high-volume move above $2.04 will then give JOEZ a chance to tag $2.50 to $3 a share.

Traders can look to buy JOEZ off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $1.54 to $1.51 a share. One can also buy JOEZ 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.

Central European Media Enterprises

Another under-$10 name that's starting to push within range of triggering a near-term breakout trade is Central European Media Enterprises (CETV), a media and entertainment company that operates broadcast, content and new media businesses in central and Eastern Europe. This stock has shown the bulls no love so far in 2013, with shares down sharply by 45%.

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If you take a look at the chart for Central European Media Enterprises, you'll notice that this stock has just started to trend back above its 50-day moving average of $3.23 a share, after shares found consistent buying interest near $3 a share. That move is quickly pushing CETV within range of triggering a near-term breakout trade.

Market players should now look for long-biased trades in CETV if it manages to break out above some near-term overhead resistance levels at $3.45 to $3.51 a share and then once it clears more resistance at $3.66 to $3.89 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 972,424 shares. If that breakout triggers soon, then CETV will set up to re-test or possibly take out its next major overhead resistance levels at $4.45 to $4.68. Any high-volume move above those levels will then give CETV a chance to tag its 200-day at $4.86 to $5.30 a share.

Traders can look to buy CETV off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $3.07 to $3.02 a share. One can also buy CETV 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.

Mechel Steel Group OAO

One more under-$10 name that looks ready to trigger a major breakout trade is Mechel Steel Group OAO (MTL), a vertically integrated mining, steel, ferroalloys and power group. This stock has been destroyed by the bears so far in 2013, with shares down big by 57%.

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If you take a look at the chart for Mechel Steel Group, you'll notice that this stock has recently formed a double bottom chart pattern at $2.62 to $2.60 a share, and buyers have stepped in at $2.70 a share to support the stock price. Shares of MTL are now bouncing sharply higher off those support levels and are quickly moving within distance of triggering a major breakout trade above the upper-end of its recent range.

Traders should now look for long-biased trades in MTL if it manages to break out above some near-term overhead resistance levels at $3.15 to $3.25 a share and then once it clears its 50-day at $3.29 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 3.17 million shares. If that breakout triggers soon, then MTL will set up to re-test or possibly take out its next major overhead resistance levels at $3.98 to $4.37 a share. Any high-volume move above those levels will then give MTL a chance to tag its next major overhead resistance levels at $4.99 to its 200-day at $5.38 a share.

Traders can look to buy MTL off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $2.70 to $2.60 a share. One can also buy MTL 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.

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.