Another under-$10 name that's trending within range of triggering a near-term breakout trade is AspenBio Pharma (APPY), a biomedical diagnostic company that develops products for human diagnostic and animal health therapeutic needs. This stock has been hammered by the bears so far in 2012, with shares down by over 65%.
If you take a look at the chart for AspenBio Pharma, you'll see that this stock recently spiked up huge from around $1.50 to just over $2 a share with monster upside volume. That spike also took APPY back above its 50-day moving average of $1.67 a share. Since that large spike, shares of APPY have started to trend sideways between a range of $1.80 to $2.05 a share. A move outside of that range will likely setup APPY for its next major trend. If that move is to the upside, then APPY could break out and get into a previous gap from back in June.
Market players should now look for long-biased trades in APPY if it can manage to trigger a breakout above some near-term overhead resistance levels at $2.05 to $2.09 a share, and then once it takes out $2.25 a share with high volume. Look for a sustained move or close above those levels with volume that tracks in close to or near its three-month average action of 103,088 shares. If that breakout triggers soon, then APPY will have a great chance to re-fill some of its previous gap that started back at around $3.36 a share.Traders can look to get long APPY off weakness and simply use a stop that sits right around some near-term support at $1.80 a share. One could also buy APPY off strength once it clears $2.05 to $2.09 a share and then add to that position once $2.25 a share is taken out with volume. If you get long off strength, then use a stop at around $1.90 a share.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV