Another under-$10 name in the biotechnology and drugs complex that looks ready to trigger a major breakout trade is Endocyte (ECYT), which is engaged in developing therapies for the treatment of cancer and inflammatory diseases. This stock is off to a red-hot start in 2012, with shares up over 110%.
If you take a look at the chart for Endocyte, you'll notice that this stock has been uptrending very strong since mid-May, with shares soaring from around $6.07 a share to a recent high of $8.55 a share. During that solid uptrend, shares of Endocyte have been making mostly higher lows and higher highs, which is bullish technical price action. Over the last few weeks, shares of Endocyte have been moving sideways between $7.75 a share and $8.55 a share. That sideways action is now setting up ECYT for a near-term breakout trade if the stock can manage to clear the upper-end of its recent range.
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