This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Stocks Setting Up to Break Out

Adventrx Pharmaceuticals

One stock that could be setting up for a big breakout is Adventrx Pharmaceuticals (ANX), a specialty pharmaceutical company focused on acquiring, developing and commercializing product candidates. This stock is down big so far in 2011, with shares off by over 55%, but the stock is ripping higher today by more than 14%.

The move higher in the stock today is due to Vista Partners' starting coverage on the stock with a $7.50 price target. A Vista analyst said that the stock currently trades at a negative enterprise value since its market cap is less than the cash position on its balance sheet.

If you take a look at the chart for Adventrx, you'll see that this stock recently gapped down big in mid-August from $2.75 a share to under $1 a share. Following that gap down, the stock has now started to trade into a sideways basing pattern between 80 cents and $1.20 a share. That massive gap down in price has also created an oversold condition on the stock as measured by its relative strength index reading of 36. Oversold can always get more oversold, but if this stock does manage to break out soon, then it could bounce big off these depressed levels.

Traders should now watch for a breakout if ANX moves above $1.21 a share on solid volume. Look for volume that's trading in close to or above its three-month average action of 1.5 million shares. Volume today is strong with over 2.8 million shares traded and the stock up over 15% to $1.06 a share.

You could be a buyer of this stock once it clears $1.21 with volume, or you could buy it off any weakness as long as the recent higher lows pattern holds. If you see ANX take out $1.21 with volume, then I think this stock will move big and start to fill some of that massive gap down in price. You could see a run toward $2 a share or possible even higher.

Adventrx shows up on a list of Hot Biotech Trades for Second-Half 2011.

2 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,156.85 +24.88 0.15%
S&P 500 2,001.57 +2.59 0.13%
NASDAQ 4,562.1890 +9.43 0.21%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs