One low-priced stock that recently exploded higher was branded fashions apparel retailer American Apparel (APP), which I highlighted in April 3's "5 Stocks Under $10 Set to Soar" at around 50 cents per share. I mentioned in that piece that shares…
>>5 Stocks Set to Soar on Bullish Earnings
Guess what happened? Shares of American Apparel triggered that move with conviction earlier this week after the stock took out 54 cents per share with monster upside volume. The upside volume on Tuesday and Wednesday registered 7.4 and 14.3 million shares, which is well above its three-month average action of 2.13 million shares. Shares of APP have continued to explode higher since, taking out 54 cents per share, with the stock tagging an intraday high today of 76 cents per share. That represents a monster gain of over 50% for anyone who bought up APP below 50 cents in anticipation of that move.
This stock continues to act and look bullish from a technical perspective, and it's very possible that it's going to continue its uptrend and tag $1 a share very soon.
>>A Small-Cap Stock With Very Big Potential
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.
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.