Stock Quotes in this Article: BIOD, CAMT, CYTK, PWE, MY

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 Plug Power (PLUG), which is skyrocketing higher by 34%; ERBA Diagnostics (ERB), which is soaring higher by 31%; Vista Gold (VGZ), which is ripping higher by 20%; and Metalico (MEA), which is spiking higher by 11%. 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.

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 trade higher from current levels.

Camtek

One under-$10 semiconductor player that's quickly moving within range of triggering a major breakout trade is Camtek (CAMT), which designs, develops, manufactures and markets automated solutions dedicated for enhancing production processes and yield for the semiconductor manufacturing and packaging and the printed circuit board and integrated circuit substrate industries. This stock has been on fire during the last three months, with shares up a whopping 154%.

If you take a look at the chart for Camtek, you'll notice that this stock has found buying interest over the last month, each time it has pulled back towards $3.40 to $3.80 a share. Shares of CAMT are now starting to spike higher off those support levels and it's quickly moving within range of triggering a major breakout trade above some key near-term overhead resistance levels.

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Traders should now look for long-biased trades in CAMT if it manages to break out above some near-term overhead resistance at $4.54 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 1.86 million shares. If that breakout triggers soon, then CAMT will set up to re-test or possibly take out its next major overhead resistance levels at $5.75 to its 52-week high at $6.43 a share.

Traders can look to buy CAMT off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support levels at $3.80 or at $3.40 a share. One can also buy CAMT off strength once it starts to take out $4.54 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Penn West Petroleum

Another under-$10 stock that's starting to trend within range of triggering a big breakout trade is Penn West Petroleum (PWE), which is engaged in the business of acquiring, exploring, developing, exploiting and holding interests in petroleum and natural gas properties and related assets. This stock has been under pressure by the bears during the last three months, with shares off by 24%.

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If you take a look at the chart for Penn West Petroleum, you'll notice that this stock has been trending sideways over the last two months, with shares moving between $7.89 on the downside and $8.84 on the upside. Shares of PWE are now starting to spike higher above its recent low of $8.14 a share and it's quickly moving within range of triggering a breakout trade above the upper-end of its recent sideways trading chart pattern.

Market players should now look for long-biased trades in PWE if it manages to break out above some near-term overhead resistance levels at $8.84 a share to its 50-day moving average of $8.96 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 2.43 million shares. If that breakout hits soon, then PWE will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $10.07 to $11 a share. Any high-volume move above those levels will then give PWE a chance to tag $11.50 to $12 a share.

Traders can look to buy PWE off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $8.14 a share or at $7.89 a share. One can also buy PWE 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.

Biodel

One under-$10 specialty biopharmaceutical player that's starting to trend within range of triggering a big breakout trade is Biodel (BIOD), which is focused on the development and commercialization of innovative treatments for diabetes. This stock has been hit hard by the bears over the last three months, with shares down by 24%.

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If you take a look at the chart for Biodel, you'll notice that this stock is ripping higher here right off its 50-day moving average of $2.32 a share with strong upside volume. Volume on Thursday has so far registered over 750,000 shares, which is well above its three-month average action of 445,084 shares. This move is quickly pushing shares of BIOD within range of triggering a big breakout trade.

Traders should now look for long-biased trades in BIOD if it manages to break out above some near-term overhead resistance levels at $2.52 to $2.60 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 445,084 shares. If that breakout triggers soon, then BIOD will set up to re-test or possibly take out its next major overhead resistance levels $3 to its 200-day moving average of $3.39 a share. Any high-volume move above $3.39 will then give BIOD a chance to tag $4 a share.

Traders can look to buy BIOD off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $2.10 a share. One can also buy BIOD 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.

China Ming Yang Wind Power Group

Another under-$10 stock that looks ready to trigger a big breakout trade is China Ming Yang Wind Power Group (MY), a wind turbine manufacturer in China. This stock has been very hot over the last six months, with shares up sharply by 52%.

If you take a look at the chart for China Ming Yang Wind Power Group, you'll notice that this stock has been uptrending over the last few weeks, with shares moving higher from its low of $1.91 to its intraday high of $2.59 a share. During that uptrend, shares of MY have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MY within range of triggering a big breakout trade.

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Market players should now look for long-biased trades in MY if it manages to break out above some past overhead resistance levels at $2.58 to $2.80 a share 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 1.56 million shares. If that breakout hits soon, then MY will set up to re-test or possibly take out its next major overhead resistance levels at $3.35 to its 52-week high at $3.52 a share. Any high-volume move above those levels will then give MY a chance to tag $4 a share.

Traders can look to buy MY off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $2.30 a share, or near more support at $2.02 a share. One can also buy MY 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.

Cytokinetics

One final under-$10 biopharmaceutical player that's quickly moving within range of triggering a major breakout trade is Cytokinetics (CYTK), which is focused on the discovery and development of small molecule therapeutics that modulate muscle function for the potential treatment of serious diseases and medical conditions. This stock has been hit hard by the sellers over the last six months, with shares off sharply by 46%.

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If you take a look at the chart for Cytokinetics, you'll notice that this stock has been trending sideways and consolidating for the last three months, with shares moving between $5.99 on the downside and $7.49 on the upside. This stock recently formed a double bottom chart pattern at $6.06 to $5.99 a share. Shares of CYTK have now started to trend higher off that bottom and back above its 50-day moving average of $6.46 a share. That move is quickly pushing shares of CYTK 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 CYTK if it manages to break out above some near-term overhead resistance at $6.97 a share, and then once it clears some past overhead resistance at $7.31 to $7.49 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 428,434 shares. If that breakout hits soon, then CYTK will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $8.32 a share to $8.94 a share. Any high-volume move above $8.94 a share will then give CYTK a chance to re-fill some of its previous gap down zone from September of 2013 that started at $11 a share.

Traders can look to buy CYTK off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $6.19 a share or at $5.99 a share. One can also buy CYTK 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.