Another stock that's trading within range of triggering a near-term breakout trade is Idenix Pharmaceuticals (IDIX), a biopharmaceutical company engaged in the discovery and development of drugs for the treatment of human viral diseases, with operations in the U.S. and Europe.. This stock has been hammered by the bears during the last six months, with shares down by over 45%.
If you look at the chart for Idenix Pharmaceuticals, you'll see that this stock recently plunged big from around $11.12 to a low of $5.28 a share. During that sharp move lower, shares of IDIX saw high volume selloffs and it even gapped down large with big volume. That said, the stock has started to stabilize and trend sideways between $5.28 and $6.35 a share. A move outside of that sideways trading pattern soon will likely setup the next major trend for IDIX.
Market players should now look for long-biased trades in IDIX if it can manage to break out above some near-term overhead resistance levels at $6.16 to $6.35 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 2,088,730 shares. If that breakout triggers soon, then IDIX will have a great chance of re-filling its previous gap and possibly hitting $8 to $9.50 a share.One could look to buy IDIX off weakness and anticipate that breakout, and simply use a stop around some previous support levels at $5.50 to $5.28 a share. You could also just buy off strength once IDIX clears $6.16 to $6.35 with high volume, and simply use a stop at around $6 a share.
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