5 Under-$10 Stocks Due to Surge
One under-$10 stock that's setting up to break out here is Astex Pharmaceuticals (ASTX), which is dedicated to the discovery and development of novel small molecule therapeutics with a focus on oncology and hematology. This stock has been on fire during the last six months, with shares soaring higher by 38%.
This company received some bullish news this morning, when a case report published online by Pediatrics said patients in a trial of Astex's drug Dacogen achieved complete remission.
If you take a look at the chart for Astex Pharmaceuticals, you'll notice that this stock has uptrending modestly for the past two months, with shares moving higher from a low of $2.15 to its intraday high of $3.06 a share. During that uptrend, shares of ASTX have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed ASTX within range of triggering a near-term breakout trade.Traders should now look for long-biased trades in ASTX if it manages to break out above some near-term overhead resistance levels at $3.03 to $3.20 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 523,056 shares. If that breakout hits soon, then ASTX will set up to re-test or possibly take out its next major overhead resistance levels at $3.40 to $3.49 a share. Any move above $3.49 will then push ASTX into new 52-week high territory, which is bullish technical price action. Some possible upside targets off any run over $3.49 a share are $4 to $4.50 a share and possibly even $5 a share. Traders can look to buy ASTX off any weakness as long as it's trending above some near-term support at its 50-day moving average of $2.60 a share. I would use a stop that sits just below that level. You can also buy off strength once ASTX takes out those breakout levels with volume and then simply use a stop that sits just below $2.88 a share.
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