This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Biotech Stocks Poised for Breakouts

Sangamo Biosciences

Another stock in the biotechnology and drugs complex that's trading within range of a major breakout trade is Sangamo Biosciences (SGMO - Get Report), which is engaged in the research, development and commercialization of zinc finger DNA-binding proteins, a naturally occurring class of proteins. This stock is off to an extremely bullish start to 2012, with shares up around 95% so far on the year.

If you take a look at the chart for Sangamo Biosciences, you'll notice that this stock has just started to bounce right off its 50-day moving average of $4.95 a share, after it had pulled back from around $5.88 a share. This bounce is now gearing SGMO up to re-test those recent highs and possible trigger a major breakout trade.

Market players should now look for long-biased traders in SGMO if this stock can manage to trigger a breakout trade above some overhead resistance levels at $5.88 to $5.89 a share, and then above $6.16 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 246,756 shares. If we get that move soon, then SGMO has a strong chance to spike towards $7 to $8 a share.

>>Hot Biotech Stocks Traded by Hedge Funds

One can look to buy SGMO off any weakness to anticipate that breakout and simply use a stop somewhere around its 50-day moving average of $4.95. I would rather buy off strength once SGMO clears $5.88 to $5.89 with volume and then add more above $6.16 a share. If you buy offs strength, then use a stop around $5.30 a share.
3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GERN $2.96 -2.60%
SGMO $6.31 0.16%
TSPT $30.00 0.67%
VPHM $49.96 -0.02%
DYAX $38.41 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.29 -10.52 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs