Stock Quotes in this Article: GNK, PRGN, PTNR, TASR, TSPT

 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 Skystar Bio-Pharmaceuticals (SKBI), which skyrocketed higher by 82.5%; NF Energy Saving (NFEC), which soared higher by 37.9%; Dataram (DRAM), which ripped higher by 20.4%; and Pointer Telocation (PNTR), which jumped higher by 18.3%. 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 higher was biotechnology player Anacor Pharmaceuticals (ANAC), which I highlighted in July 17's "5 Stocks Under $10 Set to Soar" at around $6.80 per share. I mentioned in that piece that shares of ANAC were uptrending for the last two months, with the stock pushing higher from its low of $4.83 to its high at that time of $6.93 a share. That move was quickly pushing ANAC within range of triggering a near-term breakout trade above some key resistance levels at $6.93 to $7.09 a share.

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Guess what happened? Shares of ANAC triggered that breakout a few trading sessions later and it never looked back. This stock is on fire today, with shares hitting an intraday high of $10.40 a share, which represents a huge gain of 45% in a very short timeframe. Anyone who played that breakout banked some serious coin, since shares of ANAC uptrended strong once those key breakout levels were taken out. This is why breakout trading is so powerful, because once key resistances levels are taken out you can get a huge move.

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.

With that in mind, here's a look at several under-$10 stocks that look poised to potentially trade higher from current levels.

Taser International

One under-$10 name that's starting to trend within range of triggering a big breakout trade is Taser International (TASR), which develops, manufactures and sells advanced electronic control devices designed for use in law enforcement, military, corrections, private security and personal defense. This stock is off to a slow start in 2013, with shares up 9.7%.

If you take a look at the chart for TASER International, you'll notice that this stock just recently broke out back above its 50-day moving average of $8.99 a share with strong upside volume. Following that move, shares of TASR went on to take out some more near-term overhead resistance levels at $9.05 to $9.30 a share with strong volume. Shares of TASR now look ready to trigger another big breakout trade as the stock flirts with new 52-week highs.

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Traders should now look for long-biased trades in TASR if it manages to break out above some near-term overhead resistance levels at $9.80 to its 52-week high at $9.87 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 411,795 shares. If that breakout triggers soon, then TASR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $12 to $15 a share.

Traders can look to buy TASR off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $8.99 a share. One can also buy TASR 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.

Partner Communications

Another under-$10 wireless telecom player that's starting to move within range of triggering a major breakout trade is Partner Communications (PTNR), a telecommunications company, provides cellular and fixed-line telecommunication services in Israel. This stock is off to a strong start in 2013, with shares up sharply by 29%.

If you take a look at the chart for Partner Communications, you'll notice that this stock has been trending sideways for the last month, with shares moving between $7.28 on the downside and $7.96 on the upside. Shares of PTRN are bucking the overall market weakness today as the stock starts to move within range of triggering a breakout trade above the upper-end of its sideways trading chart pattern.

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Market players should now look for long-biased trades in PTNR if it manages to break out above some near-term overhead resistance levels at $7.80 to $7.85 a share and then once it clears its 52-week high at $7.96 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 107,303 shares. If that breakout triggers soon, then PTNR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $10 to $12.20 a share.

Traders can look to buy PTNR off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $7.38 to $7.28, or below its 50-day at $6.97 a share. One can also buy PTNR 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.

Transcept Pharmaceuticals

An under-$10 biotech stock that's trending very close to triggering a near-term breakout trade is Transcept Pharmaceuticals (TSPT), which is focused on the development and commercialization of proprietary products that address important therapeutic needs in neuroscience. This stock has been hit hard by the bears so far in 2013, with shares off by 36%.

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If you take a look at the chart for TSPT, you'll notice that this stock has been trending sideways inside of a big consolidation pattern for the last three months, with shares moving between $2.71 on the downside and $3.25 on the upside. Shares of TSPT are counter-trending higher today in the face of a very weak tape. This move is starting to push the stock within range of triggering a near-term breakout trade above the upper-end of its sideways trading chart pattern.

Traders should now look for long-biased trades in TSPT if it manages to break out above its 50-day moving average at $2.91 a share and then once it takes out more near-term overhead resistance levels at $3.16 to $3.25 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 138,444 shares. If that breakout triggers soon, then TSPT will set up to re-test or possibly take out its next major overhead resistance levels at $4.23 to its 200-day at $4.39 a share. If those levels get taken out with volume, then TSPT could easily hit its next major overhead resistance levels at $5 to $5.50 a share.

Traders can look to buy TSPT off weakness to anticipate that breakout and simply use a stop that sits right below its recent low of $2.71 a share. One can also buy TSPT 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.

Paragon Shipping

Another under-$10 name shipping player that's starting to move within range of triggering a big breakout trade is Paragon Shipping (PRGN), which is engaged in transporting drybulk cargoes, including such commodities as iron ore, coal, grain and other materials along shipping routes worldwide. This stock has been on fire so far in 2013, with shares up sharply by 114%.

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If you take a look at the chart for Paragon Shipping, you'll notice that this stock just recently took out its 50-day moving average of $4.19 a share with strong upside volume. Shares of PRGN are showing relative strength today, despite the overall market weakness, which shows this stock is in strong demand at current levels. This move is now starting to push shares of PRGN within range of triggering a big breakout trade

Market players should now look for long-biased trades in PRGN if it manages to break out above some near-term overhead resistance at $4.90 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 25,811 shares. If that breakout triggers soon, then PRGN will set up to re-test or possibly take out its 52-week high at $5.70 a share. If that level gets taken out with volume, then PRGN could easily tag its next major overhead resistance levels at $7 to $8.35 a share.

Traders can look to buy PRGN off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $4.19 a share, or below its 200-day moving average at $3.74 a share. One can also buy PRGN off strength once it clears $4.90 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point. I would add to either position once PRGN takes out its 52-week high at $5.70 a share with strong upside volume flows.

Genco Shipping & Trading

One final under-$10 shipping player that looks ready to trigger a near-term breakout trade is Genco Shipping & Trading (GNK), which transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes through the ownership and operation of drybulk carrier vessels. This stock has been hit hard by sellers so far in 2013, with shares off big by 40%.

If you take a look at the chart for the Genco Shipping & Trading, you'll notice that stock is another name that's bucking the overall market weakness today, with shares currently trending to the upside. Shares of GNK recently started to spike higher right off its 50-day moving average at $1.79 a share with decent upside volume. That move is quickly pushing GNK within range of triggering a near-term breakout trade.

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Traders should now look for long-biased trades in GNK if it manages to break out above some near-term overhead resistance levels at $2.32 To $2.36 a share and then once it clears its 200-day at $2.47 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 803,742 shares. If that breakout triggers soon, then GNK will set up to re-test or possibly take out its next major overhead resistance levels at $3.34 to $3.50 a share. Any high-volume move above those levels will then put $4 to $4.20 into range for shares of GNK.

Traders can look to buy GNK off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $1.79 a share, or right below more key near-term support at $1.72 to $1.60 a share. One can also buy GNK 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.