One more stock that's already starting to trigger a big breakout trade today is Galena Biopharma (GALE), a biotechnology company focused on discovering, developing and commercializing therapies addressing unmet medical needs using RNAi-targeted and immunotherapy technologies. This yet another hot stock in 2012, with shares up over a whopping 196%.
If you look at the chart for Galena Biopharma, you'll notice that this stock hit a recent low at 36 cents per share back in December. Since hitting that low, the stock has soared to its current price of around $1.40 a share. During that monster uptrend, shares of Galena Biopharma have consistently made higher lows and higher highs, which is bullish price action. The stock has also seen strong upside volume trends, which is bullish technical action. Now GALE is starting to trigger a big breakout trade today on strong volume.
Market players should continue to look for long-biased trades in GALE as long as the stock is trending near or above its key breakout levels of $1.39 to $1.48 a share. At last check, this stock has hit a daily high of $1.48 and volume is already over 2.8 million shares, which is well above its three-month average action of 818,074 shares. If this stock can manage to close near its daily highs and above those breakout levels, then it has a great chance to re-test its next major overhead resistance levels at $1.65 to $2.14 a share or possibly much higher very quickly.This is another heavily shorted stock, since the current short interest as a percentage of the float for GALE stands at 11%. The bears have also been increasing their short positions from the last reporting period by 52.6%, or by about 1.52 million shares. Look for a monster short-squeeze to kick off if GALE can hold the breakout. I also featured Galena recently in "5 Stocks Under $5 Making Big Moves." To see more breakout candidates, includingConceptus (CPTS), Sun Healthcare Group (SUNH) and Open Table (OPEN), check out the Breakout Stocks of the Week portfolio on Stockpickr. -- Written by Roberto Pedone in Winderemere, Fla.
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