My final breakout trade idea today is Celldex Therapeutics (CLDX), a biopharmaceutical company that applies its Precision Targeted Immunotherapy Platform to generate a pipeline of candidates to treat cancer and other difficult-to-treat diseases.
If you look at the chart for Celldex Therapeutics, you'll see that this stock has been uptrending strong for the last six months, with shares trending higher from $3.54 to $5.72 a share. During that uptrend, shares of CLDX have based and then broken out two significant times; including just recently with the stock pushing back above its 50-day moving average of $5.09 a share. The most recent base and breakout has now pushed CLDX within range of taking out its 52-week high of $5.72 a share.
Traders should now look for long-biased trades in CLDX once it manages to clear some near-term overhead resistance levels at $5.56 to $5.72 a share with high volume. Look for volume off that move that hits near or above its three-month average action of 786,562 shares. If that breakout triggers soon, then CLDX has a great chance to re-test or possibly take out its next major overhead resistance level at $7 a share. That breakout would also push CLDX into a previous gap down zone from back in 2012.One could look to get long CLDX off weakness, and simply use a stop just below its 50-day moving average of $5.09 a share. You could also just buy off strength once CLDX takes out $5.66 to $5.72 a share with high volume. If you buy off strength, you could use the same stop below the 50-day, or something much tighter depending on the size of your trade. Keep in mind that CLDX is another name that's popular among the short-sellers. The current short interest as a percentage of the float for CLDX is rather high at 11%. If CLDX can print a new 52-week high soon, then those shorts could get spooked and start cover some of their positions, which will potentially spike CLDX significantly higher. To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook. At the time of publication, author had no positions in stocks mentioned. Jonas Elmerraji, based out of Baltimore, is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia , and has been featured in Investor's Business Daily , in Consumer's Digest and on MSNBC.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV