5 Biotech Stocks Rising on Unusual Volume

Today's Range: $2.60-$2.91

52-Week Range: $2.22-$5.34

Volume: 7.61 million

Three-Month Average Volume: 3.14 million

From a technical perspective, DVAX is bouncing strongly to the upside here with monster volume. This stock recently gapped down huge, from around $5 to its recent low of $2.21 with heavy selling volume. That move pushed DVAX into oversold territory, since its relative strength index (RSI) reading dipped below 30. Shares of DVAX are now moving into the gap since the stock has recently cleared its gap down day high just above $2.50 with volume.

Traders should now look for long-biased trades in DVAX as long as it's trending above its gap down day high near $2.50 with strong upside volume flows. I would consider any upside volume day that registers near or above 3.14 million shares as bullish. If DVAX can maintain that trend, then this stock will set up to re-fill its gap down zone back towards its 200-day at $4.25.

To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

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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 technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

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