Another stock in the biotechnology and drugs complex that's trading close to triggering a near-term breakout is
(CUR - Get Report)
, which is focused on developing and commercializing of treatments for central nervous system disease based on transplanting human neural stem cells and small molecule drugs.
If you look at the chart for Neuralstem, you'll see that this stock recently formed a triple top at around $1.01, $1 and 99 cents per share. Following that topping pattern, shares of CUR plunged to its recent low of 42 cents per share. During that sharp move lower, shares of CUR were consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock has now started to uptick strong and see some massive upside volume flows. The recent bullish trend for CUR has also started to push the stock within range of triggering a major breakout trade.
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Traders should now look for long-biased trades in CUR if it can manage to break out above some near-term overhead resistance at 58 cents per share with high volume. Look for a sustained move or close above 58 cents per share with volume that registers near or above its three-month average action of 132,434 shares. If that breakout triggers soon, then CUR could explode to the upside and potentially re-fill a previous gap that started above 65 cents. In fact, if CUR breaks out soon with volume, then this stock could hit 80 to 90 cents per share very quickly.
One could look to buy CUR off weakness and simply use a stop that sits just below some near-term support at 50 cents per share. Or you could buy off strength once CUR clears 58 cents per share with volume and gets into that gap down zone from earlier this month. If you buy off strength, then use a stop that also sits just below 50 cents per share.