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 big movers in the under-$10 complex from Thursday, including Response Genetics (RGDX), which is exploding higher by 20%; Imprimis Pharmaceuticals (IMMY), which is ripping higher by over 11%; Ideal Power (IPWR), which is trending to the upside by over 10%; and Lucas Energy (LEI), which is jumping higher by 10%. 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 China-based battery maker Highpower International (HPJ), which I highlighted in Mar. 20's "5 Stocks Under $10 Set to Soar" at around $5.37 per share. I mentioned in that piece that shares of Highpower International had recently pulled back off its high of $6.40 to its low of $4.21 a share. Following that pullback, shares of HPJ were starting to spike higher and quickly move within range of triggering a near-term breakout trade above a key downtrend line at $5.50 to $5.95 a share.

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Guess what happened? Shares of Highpower International triggered that breakout in spades on April 1 with monster upside volume. Volume on that trading session finished at 4.06 million shares, which is well above its three-month average action of 477,544 shares. Shares of HPJ soared higher that day tagging an intraday high of $7.29 a share. Shares of HPJ have continued to trend higher with the stock hitting an intraday high today of $7.73 a share. That represents a monster gain of over 40% in a very short timeframe for anyone who played this setup.

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.

American Apparel


One under-$10 stock that's starting to trend within range of triggering a near-term breakout trade is American Apparel (APP), which designs, manufactures, distributes, retails and sells branded fashion basic apparel products and clothing and accessories for women, men, children and babies. This stock has been destroyed by the bear so far in 2014, with shares down by a whopping 58%.

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If you glance at the chart for American Apparel, you'll notice that this stock has been downtrending badly for the last three months, with shares dropping from its high of $1.45 to its recent low of 46 cents per share. During that move, shares of APP have been making mostly lower highs and lower lows, which is bearish technical price action. This stock also gapped down sharply recently from around 80 cents to 46 cents per share with heavy downside volume. That move has now pushed shares of APP into oversold territory, so any change in trend could spark a monster oversold rebound higher.

Traders should now look for long-biased trades in APP if it manages to break out above some near-term overhead resistance at 54 cents per share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average action of 1.41 million shares. If that breakout kicks off soon, then APP will set up to re-fill some of its previous gap-down-day zone from March that started near 80 cents per share.

Traders can look to buy APP off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at 47 to 46 cents per share. One can also buy APP off strength once it starts to take out 54 cents per share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Forest Oil


Another under-$10 stock that's starting to push within range of triggering a major breakout trade is Forest Oil (FST), which is engaged in the acquisition, exploration, development and production of oil, natural gas and natural gas liquids primarily in North America. This stock has been hammered hard by the sellers so far in 2014, with shares off by 46%.

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If you take a look at the chart for Forest Oil, you'll see that this stock recently gapped down sharply from $3.27 to under $2 a share with heavy downside volume. Following that move, shares of FST went on to hit new 52-week low of $1.68 a share. Shares of FST have now started to uptrend off that $1.68 low to its recent high of $1.94 a share. This stock is moving modestly higher here and it's starting to trend within range of triggering a major breakout trade.

Market players should now look for long-biased trades in FST if it manages to break out above some near-term overhead resistance levels at $1.94 to $2 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 5.47 million shares. If that breakout hits soon, then FST will set up to re-test or possibly take out its next major overhead resistance level at its gap-down-day high of $2.46 a share. Any high-volume move above that level will then give FST a chance to re-fill some of its previous gap-down-day zone from February that started at $3.27 a share.

Traders can look to buy FST off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $1.80 to $1.78 a share. One can also buy FST 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.

Alpha Natural Resources


One under-$10 basic materials player that's starting to move within range of triggering a near-term breakout trade is Alpha Natural Resources (ANR), which is engaged in extracting, processing and marketing thermal and metallurgical coal in Virginia, West Virginia, Kentucky, Pennsylvania and Wyoming. This stock has been hit hard by the bears so far in 2014, with shares down by 37%.

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If you take a glance at the chart for Alpha Natural Resources, you'll notice that this stock has been downtrending badly for the last five months, with shares plunging lower from its high of $8.30 to its recent low of $4.12 a share. During that downtrend, shares of ANR have been consistently making lower highs and lower lows, which is bearish technical price action. That said, a trend change could be developing rapidly here for shares of ANR as the stock comes off its recent low of $4.12 and it's quickly moving within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in ANR if it manages to break out above some near-term overhead resistance levels at $4.63 to $4.75 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 11.49 million shares. If that breakout gets underway soon, then ANR will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $4.99 to $5.50 a share.

Traders can look to buy ANR off weakness to anticipate that breakout and simply use a stop that sits just below its 52-week low of $4.12 a share. One can also buy ANR 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.

Atlantic Power


Another under-$10 stock that's starting to trend within range of triggering a near-term breakout trade is Atlantic Power (AT), which owns and operates a fleet of power generation assets in the U.S. and Canada This stock has been under the control of the bears over the last six months, with shares off sharply by 36%.

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If you look at the chart for Atlantic Power, you'll notice that this stock hit a near-term bottom in February at $2.06 a share after the stock fell sharply over the last few months from around $5 a share. Since hitting that bottom, shares of AT has started to uptrend with the stock moving higher from its low of $2.06 to its recent high of $2.98 a share. That uptrend has pushed the stock back above its 50-day moving average and it's now quickly moving within range of triggering a near-term breakout trade.

Market players should now look for long-biased trades in AT if it manages to break out above some key near-term overhead resistance levels at $2.98 to $3.07 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 action of 1.47 million shares. If that breakout starts soon, then AT will set up to re-test or possibly take out its next major overhead resistance levels at $3.25 to $3.50 a share, or even $3.70 a share.

Traders can look to buy AT off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $2.67 a share or near more key support at $2.50 to $2.40 a share. One can also buy AT off strength once it starts to move above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Imris


One final under-$10 stock that's starting to trend within range of triggering a big breakout trade is Imris (IMRS), which designs, manufactures and sells image-guided therapy systems that enable surgeons to obtain information and make decisions during the course of procedure. This stock has been hit hard by the sellers over the last month, with shares dropping by 37%.

If you take a glance at the chart for IMRIS, you'll notice that this stock has been downtrending badly for the last month and change, with shares sliding lower from its high of $2.90 to its recent low of $1.50 a share. During that downtrend, shares of IMRS have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of IMRS are now starting to find some buying interest right off some previous support levels at $1.50 a share. Shares of IMRS are now starting to bounce higher and move within range of triggering a big breakout trade.

Traders should now look for long-biased trades in IMRS if it manages to break out above some near-term overhead resistance levels at $1.67 to $1.70 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 414,382 shares. If that breakout materializes soon, then IMRS will set up re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $1.97 a share to its 50-day moving average of $2.03 a share. Any high-volume move above those levels will then give IMRS a chance to tag or take out its next major overhead resistance level at $2.20 a share.

Traders can look to buy IMRS off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $1.50 to $1.30 a share. One can also buy IMRS 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.