My final idea that could be ready to trigger a major breakout trade is biotechnology and drugs player Sarepta Therapeutics (SRPT), which is focused on the discovery and development of RNA-based therapeutics for the treatment of both rare and infectious diseases.
If you look at the chart for Sarepta Therapeutics, you'll notice that this stock has experienced two sharp spikes higher this week off of some near-term support at $9 a share with strong upside volume. Volume for those spikes was 3.9 million and 1.6 million shares, which is well above its three-month average volume of 821,273 shares. Following those spikes, shares of SRPT have so far been holding its gains, which is bullish technical action. This price trend is quickly pushing SRPT within range of triggering a major near-term breakout trade.
Traders should now look for long-biased traders in SRPT once it manages to clear some near-term overhead resistance at $10.78 a share with high volume. Look for a sustained move or close above $10.78 with volume that hits near or above its three-month average action of 821,273 shares. If that breakout triggers soon, then SRPT will have a great chance of hitting $12 to $13 a share in the near-term, or possibly even higher.One could look to get long SRPT off weakness, and simply use a stop right around that key near-term support level at $9 a share. A better bet might be to get long once SRPT sustains a move or close above $10.78 with high volume, and simply use a stop right below $10 a share. Either way, I would avoid long trades below $9, and stalk this for a breakout over $10.78 a share. To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr. -- Written by Roberto Pedone in Winderemere, Fla.
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