One under-$10 name in the biotechnology and drugs complex that's moving within range of triggering a near-term breakout trade is Anthera Pharmaceuticals (ANTH). This company is focusing on developing and commercializing products to treat serious diseases associated with inflammation, including cardiovascular and autoimmune diseases. This stock has been destroyed by the bears so far in 2012, with shares down by over 80%.
If you take a look at the chart for Anthera Pharmaceuticals, you'll that this stock has been trending sideways for the last two months, with shares moving between 81 cents on the downside and $1.29 on the upside. Shares of ANTH have just today started to challenge its 50-day at 98 cents per share, and it's quickly moving within range of triggering a major breakout trade above some near-term overhead resistance levels.
Traders should now look for long-biased trades in ANTH once it manages to break out above some near-term overhead resistance levels at $1.07 to $1.29 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 1,130,750 shares. If that breakout triggers soon, then ANTH will set up for a potentially explosive move higher back towards its next major overhead resistance level at $1.79 a share. Any high-volume move above $1.79 will give ANTH a chance to re-fill some of its previous gap down zone that started at around $2.80 a share.Traders can look to buy ANTH as long as it's trending above today's low of 95 cents per share with strong upside volume flows. You can also buy off strength once ANTH takes out $1.07 to $1.29 a share with volume, and then simply use a stop that sits just below its 50-day at 98 cents per share.