Zogenix (ZGNX - Get Report)
52-week Range: $1.31-$5.11
Three-Month Average Volume: 305,806 Shares of ZGNX are soaring today after the company said Mallinckrodt LLC, the pharmaceuticals business of Covidien (COV), announced an exclusive co-promotion agreement for SUMAVEL DosePro (sumatriptan injection) Needle-free Delivery System in the United States. From a technical perspective, ZGNX is bouncing right off its 50-day moving average here with above-average volume. This move is quickly pushing ZGNX within range of triggering a major breakout trade. That trade will hit once ZGNX takes out its 200-day moving average of $2.15, and then some past overhead resistance at $2.28 with high volume. Traders should now look for long-biased trades, if ZGNX can sustain a move or close above those levels with volume that's near or above 305,806 shares. If we get that action soon, then look for ZGNX to fill a previous gap down and possibly hit its March high of $2.90.