An under-$10 stock in the biotechnology and drugs complex that looks ready to trigger a breakout trade is Inovio Pharmaceuticals (INO - Get Report), which is engaged in the development of a new generation of vaccines, called synthetic vaccines, focused on cancers and infectious diseases. This stock is off to a strong start in 2012, with shares up sharply by 48%.
If you take a look at the chart for Inovio Pharmaceuticals, you'll notice that this stock has been uptrending very strong for the past six months, with shares soaring from 38 cents to a recent high of 76 cents per share. During that uptrend, shares of INO have been mostly making higher lows and higher highs, which is bullish technical price action. That trend has now pushed shares of INO within range of triggering a major breakout trade.Traders should now look for long-biased trades in INO once it manages to break out above some near-term overhead resistance at 76 cents per share with high volume. Look for a sustained move or close above 76 cents with volume that hits near or above its three-month average volume of 553,362 shares. If that breakout triggers soon, then INO will setup to re-test or possibly take out its next major overhead resistance levels at 89 to 96 cents per share, and possibly even $1.20 to $1.30 a share or higher. Traders can look to buy INO as long as it's trending above its 50-day moving average of 60 cents per share with strong upside volume flows. I would add to any long positions once INO manages to take out 76 cents per share with heavy volume, and then add again above 89 to 96 cents per share.