Another under-$10 stock that's moving within range of triggering a major breakout trade is
(IBIO - Get Report), a biotechnology company focused on commercializing its technology, the iBioLaunch platform, for the production of biologics, including vaccines and therapeutic proteins. This stock is off to a hot start so far in 2012, with shares up over 30%.
If you take a look at the chart for Ibio, you'll notice that this tock spiked up huge back in July from around 70 cents to $1.70 a share with bullish upside volume flows. After hitting $1.70, shares of IBIO went on to pullback to its current price near $1.10 a share. On Wednesday, IBIO started to trend higher and find buying interest right off both its 50-day at $1.06 and its 200-day at $1.07 a share. This move is now quickly pushing IBIO within range of triggering a major
>>4 Biotech Stocks Under $10 Making Big Moves
Traders should now look for long-biased trades in IBIO once it manages to break out above some near-term overhead resistance levels at $1.20 to $1.36 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 254,119 shares. If that breakout triggers soon, then IBIO will have a great chance of re-testing or possibly taking out its next major overhead resistance levels at $1.70 to $1.75 a share, or possibly even $1.95 to $2.30 a share.
Traders can look to buy IBIO off weakness with a stop that sits just below some major near-term support levels at $1.03 to 97 cents per share. One could also just buy IBIO off strength once it clears $1.20 to $1.36 a share with high volume, and then simply use a stop somewhere around its 50-day moving average of $1.06 a share.