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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Poised for Breakouts

Alexza Pharmaceuticals

Another stock that's trading within range of triggering a major breakout trade is Alexza Pharmaceuticals (ALXA), which is focused on the research, development and commercialization of products for the acute treatment of central nervous system conditions. This stock has been hit hard by the sellers so are in 2012, with shares down by around 38%.

This is another biotech player with a major catalyst on the horizon. This company has a scheduled PDUFA date of Dec. 21 for its Adasuve product, which is designed for the treatment of agitation associated with schizophrenia or biopolar I disorder in adults.

>>5 Stocks Insiders Love Right Now

If you look at the chart for Alexza Pharmaceuticals, you'll notice that this stock just recently started to bounce right off its 50-day moving average of $4.20 a share with decent volume. That bounce has now pushed ALXA within range of triggering a major breakout trade back above some near-term overhead resistance, and above its 200-day moving average at $5.30 a share.

Market players should now look for long-biased trades in ALXA if it can manage to break out above some near-term overhead resistance levels at $5.15 to $5.30 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 450,838 shares. If that breakout triggers soon, then ALXA will have a great chance of exploding higher and running up into its PDUFA meeting. Some possible upside targets off that breakout are $6 to $8 a share, and possibly even $9 a share.

One could look to buy ALXA once that breakout triggers above $5.15 to $5.30 with volume and then simply use a stop that sits just below some previous resistance at around $4.86 a share.

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