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

5 Stocks Under $10 Poised to Move Higher

Stocks in this article: RGEN PNX CIS KERX TRX

Keryx Biopharmaceuticals

An under-$10 name in the biotechnology and drugs complex that's quickly approaching a big breakout trade is Keryx Biopharmaceuticals (KERX), a biopharmaceutical company focused on the acquisition, development and commercialization of pharmaceutical products for the treatment of cancer and renal disease. This is one of the hottest stocks so far in 2012 with shares up over 88%.

If you take a look at the chart for Keryx Biopharmaceuticals, you'll that this stock has been solidly in a monster uptrend since it bottomed in December at $2.27 a share. Since tagging that bottom, the stock has soared and consistently made higher lows and higher highs, which is bullish price action. That move has now pushed KERX within range of triggering a major near-term breakout trade.

Traders should now look for long biased trades in KERX if this stock can manage to break out above some near-term overhead resistance levels at $4.80 to $5.12 a share with high-volume. Look for volume on that move that's near or well above its three-month average action of 2,078,550 shares. At last check, volume on Thursday registered over 4.14 million shares and the stock hit a daily high of $4.94 before closing at $4.78 a share. A sustained high-volume move and close above $4.80 to $5.12 should set this stock up for some sizable upside.

Traders should look for long-biased trades as long as KERX is trending above $5.12 with strong upside volume flows. If we get that action soon, then look for KERX to quickly re-test its next significant overhead resistance levels at $5.55 to $5.91 a share. Then any high-volume move above $5.91 will put even more key overhead resistance at $6.67 a share into play, so you can see that there's some big upside here if these breakouts trigger soon.

This stock sports an extremely large short interest as a percentage of its float at 16.5%. That means a monster short-squeeze could easily get setoff if some of those breakout levels are taken out soon with volume. That said, I would avoid long trades in KERX if the stock is trending below $4.80 with strong downside volume flows.

Kervyx shows up on recent a list of the 10 Best-Performing Stocks in Three-Year Bull Market.

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