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These 5 Stocks Under $10 Could Make You a Lot of Money

There isn't a day that goes by on Wall Street when certain stocks trading for under $10 a share don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sod risk management are banking ridiculous coin on a regular basis.

SMALL INVESTMENT, BIG POTENTIAL. TheStreet's Stocks Under $10 has identified a handful of stocks with serious upside potential. See them FREE for 14-days.

Just take a look at some of the big movers to the upside in the under-$10 complex from Thursday, including DryShips (DRYS) which soared by 133.3%; StemCells (STEM) , which ripped up by 46.9%; MannKind (MNKD) , which soared by 33%; and Eleven Biotherapeutics (EBIO) , which jumped higher by 26%. 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. These are also the exact type of stocks that I love to trade and alert in real-time. 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 stocks, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 stocks 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.

Cumulus Media

One under-$10 broadcasting player that's starting to move within range of triggering a big breakout trade is Cumulus Media (CMLS) which owns and operates radio stations in the U.S. This stock has been smoked by the sellers over the last six months, with shares falling sharply by 63%.

SMALL INVESTMENT, BIG POTENTIAL. TheStreet's Stocks Under $10 has identified a handful of stocks with serious upside potential. See them FREE for 14-days.

If you take a glance at the chart for Cumulus Media, you'll notice that this stock has been downtrending badly over the last two months and change, with shares falling sharply off its high of $3.28 a share to its recent low of 95 cents per share. During that downtrend, shares of Cumulus Media have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock recently formed a double bottom chart pattern at 95 to 96 cents per share. If that bottom can hold, this stock now has a chance to trigger a breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades in shares of Cumulus Media if it manages to break out above some near-term overhead resistance levels at $1.10 to $1.15 a share and then above more resistance at $1.20 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 202,655 shares. If that breakout fires off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $1.35 to its 20-day moving average of $1.46 a share, or even $1.60 to $1.90 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right around those recent double bottom support levels. One can also buy shares of Cumulus Media off strength once it starts to trend...