This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Biotech Stocks Poised for Breakouts


One more stock that's nearing a major breakout trade is StemCells (STEM). This company is focused on cellular medicine, or the use of stem and progenitor cells as the basis for therapeutics and therapies, and enabling technologies for stem cell research, or the use of cells and related technologies to enable stem cell-based research and drug discovery and development. This stock is off to a monster start in 2012, with shares up a whopping 150% so far.

If you look at the chart for StemCells, you'll notice that this stock has uptrending ridiculously strong for the past four months, with shares soaring from a low of 60 cents to its recent high of $2.67 a share. During that uptrend, shares of STEM have been consistently making higher lows and higher highs, which is bullish technical price action. Shares of STEM have now started to trend sideways during the last month, with shares moving between $1.80 and $2.28 a share. A high-volume above the upper-end of that sideways trading pattern will now trigger a major breakout trade for STEM.

Traders should now look for long-biased trades in STEM once it manages to clear some near-term overhead resistance levels at $2.27 to $2.28 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 2.8 million shares. If that breakout triggers soon, then STEM will setup to re-test and possibly take out its next major overhead resistance level at $2.67 a share. If $2.67 was to get taken out with volume, then STEM will have an excellent chance of tagging $4 a share very soon.

One could look to buy STEM off any weakness, and simply use a stop that sits right around its 50-day moving average of $1.85 a share. You could also just buy off strength once STEM clears $2.27 to $2.28 a share with high volume, and then simply use a stop at around $2 a share.

To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.


Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to and maintains the website, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
CERS $4.62 0.54%
NVAX $7.95 4.50%
SGYP $6.48 5.50%
SCMP $19.08 -1.60%
STEM $0.42 4.20%


Chart of I:DJI
DOW 17,061.92 +11.17 0.07%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,815.5790 +4.7910 0.10%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs