Stock Quotes in this Article: CHCI, CHLN, GGB, NBG, SVNT

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 Opexa Therapeutics (OPXA), which skyrocketed higher by 131%; China Yida (CNYD), which spiked sharply higher by 47.45%; Pixelworks (PXLW), which soared higher by 29.9%; and Marchex (MCHX), which jumped higher by 24.1%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

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.

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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.

Comstock

One under-$10 housing player that's starting to trend within range of triggering a major breakout trade is Comstock (CHCI), which is a multi-faceted real estate development and services company focused on the Washington, D.C. metropolitan area. This stock is off to a monster start in 2013, with shares up a whopping 126%.

If you take a look at the chart for Comstock, you'll notice that this stock has been trending sideways for the last three months, with shares moving between $3.65 on the upside and $2.36 on the downside. Shares of CHCI are starting to uptick and move within range of breaking out above the upper-end of its sideways trading chart pattern.

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Traders should now look for long-biased trades in CHCI if it manages to break out above some near-term overhead resistance levels at $2.86 to $3.05 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 277,435 shares. If that breakout triggers soon, then CHCI will set up to re-test or possibly take out its range high and 52-week high at $3.65 a share. Any high-volume move above that level will then give CHCI a chance to trend well north of $4 a share.

Traders can look to buy CHCI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $2.51 to $2.36 a share, or even below $2.20 a share. One can also buy CHCI 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.

China Housing & Land Development

Another under-$10 housing play that's starting to move within range of triggering a near-term breakout trade is China Housing & Land Development (CHLN), which is engaged in the development, construction and sale of residential and commercial real estate units, as well as land development in the People's Republic of China. This stock is off to a hot start in 2013, with shares up 67%.

If you take a look at the chart for China Housing & Land Development, you'll notice that this stock has recently started to trend back above its 50-day moving average at $1.94 a share. This stock has also been uptrending strong for the last month and change, with shares moving higher from its low of $1.51 to its recent high of $2.28 a share. That move has now pushed shares of CHLN within range of triggering a near-term breakout trade.

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Market players should now look for long-biased trades in CHLN if it manages to break out above some near-term overhead resistance levels at $2.28 to $2.30 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 96,347 shares. If that breakout triggers soon, then CHLN will set up to re-test or possibly take out its 52-week high at $2.70 a share. Any high-volume move above that level will then give CHLN a chance to trend well north of $3 a share. Some possible targets are $3.50 to $4 a share.

Traders can look to buy CHLN off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average at $1.94 a share, or right below more support at $1.88 a share. One can also buy CHLN 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.

Gerdau

One under-$10 steel player that's trending very close to triggering a major breakout trade is Gerdau (GGB), which produces long steel and flat steel items through the process of fabrication in electrical furnaces from scrap metal and purchased pig iron, as well as by manufacturing steel from iron ore in the blast furnace. This stock has been hit hard by the sellers so far in 2013, with shares off by 26%.

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If you take a look at the chart for GGB, you'll notice that this stock has been uptrending strong for the last month and change, with shares soaring higher from its low of $5.27 to its recent high of $6.71 a share. During that uptrend, shares of GGB have been consistently making higher lows and higher highs, which is bullish technical price action. The recent uptrend for GGB has also removed the stock from its prolonged downtrend over the last year. Shares of GGB are now starting to push within range of triggering a major breakout trade.

Traders should now look for long-biased trades in GGB if it manages to break out above some near-term overhead resistance levels at $6.71 to $7.05 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 6.46 million shares. If that breakout triggers soon, then GGB will set up to re-test or possibly take out its next major overhead resistance levels at $7.88 to $8.28 a share. Any high-volume move above those levels will then give GGB a chance to tag its next major overhead resistance levels at $9 to $9.65 a share.

Traders can look to buy GGB off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average at $6.04 a share. One can also buy GGB 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.

Savient Pharmaceuticals

Another under-$10 name that's starting to move within range of triggering a major breakout trade is Savient Pharmaceuticals (SVNT), a biopharmaceutical company with one meaningful drug, Krystexxa, which treats chronic gout refractory to conventional therapy. This stock has been under selling pressure from the bears in 2013, with shares down sharply by 38.4%.

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If you take a look at the chart for Savient Pharmaceuticals, you'll notice that this stock has been uptrending over the last few weeks, with shares moving higher from its low of 56 cents to its recent high of 70 cents per share. Shares of SVNT formed a double bottom at 56 cents per share, prior to this uptrend and the stock has now started to trend back above its 50-day moving average at 65 cents per share. That move is quickly pushing shares of SVNT within range of triggering a major breakout trade.

Market players should now look for long-biased trades in SVNT if it manages to break out above some near-term overhead resistance levels 70 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 action of 800,841 shares. If that breakout triggers soon, then SVNT will set up to re-test or possibly take out its next major overhead resistance levels at 90 cents to 91 cents per share. Any high-volume move above those levels will then put its 200-day at 92 cents to $1 into range for shares of SVNT.

Traders can look to buy SVNT off weakness to anticipate that breakout and simply use a stop that sits right below 60 cents to 56 cents per share. One can also buy SNSS 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.

National Bank of Greece

One final under-$10 name that looks ready to trigger a big breakout trade is National Bank of Greece (NBG), which is engaged in providing financial services including retail and commercial banking, global investment management, investment banking, insurance, investment activities and securities trading. This stock has been destroyed by the bears so far in 2013, with shares down big by 79%.

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If you take a look at the chart for the National Bank of Greece, you'll notice that this stock has been trending sideways for the last month and change, with shares moving between $2.85 on the downside and $3.88 on the upside. Shares of NBG have now started to uptick and trend within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern. Keep in mind that this sideways and consolidating price action is coming after a massive downtrend for NBG. If NBG can trigger that breakout soon, then this stock could reverse its downside volatility and enter a new uptrend.

Traders should now look for long-biased trades in NBG if it manages to break out above some near-term overhead resistance levels at $3.70 to $3.88 a share and then once it clears its 50-day at $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 3.69 million shares. If that breakout triggers soon, then NBG will set up to re-test or possibly take out its next major overhead resistance levels at $4.47 to $5.63 a share. Any high-volume move above those levels will then put $6 to $7 into range for shares of NBG.

Traders can look to buy NBG off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $3.26 to $3.20 a share. One can also buy NBG 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.