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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Breakout Stocks to Eye for a Buy

OxiGene

One final stock that's quickly nearing a big breakout trade is OxiGene (OXGN). This is a clinical-stage, biopharmaceutical company that's developing therapeutics to treat cancer and eye diseases. This stock has traded up slightly so far in 2012 with shares up over 5%.

If you look at the chart for OxiGene, you'll notice this stock was drilled after it printed $1.97 in early November, falling to a recent low of $0.89 a share. After hitting that near-term low, this stock has started to trade sideways between $0.97 and $1.37 a share. A move to the upside outside if that sideways trading pattern should break this stock out and potentially set it up for a sharp spike higher.

Market players should watch OXGN for a high-volume move and close back above some near-term overhead resistance at $1.16 and then above $1.37 a share. Watch for volume to track in close to or well above its three-month average action of 475,874 shares. At last check, volume has already hit over 700,000 shares, so market players should now watch for OXGN to close above its 50-day moving average of $1.03.

If we get that action, then OXGN has a good chance to break out next week and spike higher once $1.16 is taken out with volume. A sustained high-volume move or close over $1.16 should set this stock up to re-test $1.37 to $1.97 a share. That $1.97 level could easily get hit once $1.37 is taken out with heavy volume, so keep this name on your trading radar for next week.

To see more breakout candidates like Melco Crown Entertainment (MPEL), Opnext (OPXT) and Mag Silver (MVG), check out the Breakout Stocks of the Week portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

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At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.
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