Another pharmaceutical stock that's quickly moving within range of triggering a near-term breakout trade is Corcept Therapeutics (CORT - Get Report), which is engaged in the discovery and development of drugs for the treatment of severe metabolic and psychiatric disorders. This stock has been hammered by the bears during the last six months, with shares off a large 46%.
If you take a look at the chart for Corcept Therapeutics, you'll notice that this stock has been uptrending strong for the last three months, with shares soaring from its low of $1.27 to its recent high of $2.20 a share. During that uptrend, shares of CORT have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed CORT within range of triggering a near-term breakout trade.
Market players should now look for long-biased trades in CORT if it manages to break out above some near-term overhead resistance at $2.20 a share with high volume. Look for a sustained move or close above $2.20 a share with volume that registers near or above its three-month average action of 622,545 shares. If that breakout hits soon, then CORT will set up to re-test or possibly take out its next major overhead resistance levels at $2.50 to $2.75 a share. Any move above $2.75 will then put $2.89 to $3.03 into range for shares of CORT.Traders can look to buy CORT off any weakness to anticipate that breakout and simply use a stop that sits close to some key near-term support at $1.80 a share. One could also buy off strength once CORT clears $2.20 a share with volume and then simply use a stop that sits just below $2 a share.
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