Another under-$10 stock that's trending very close to triggering a major breakout trade is AEterna Zentaris (AEZS - Get Report), which is focused on endocrine therapy and oncology with expertise in drug discovery, development and commercialization, mainly targeting the North American and European markets. This stock has been on fire so far in 2013, with shares up by 23%.
If you take a look at the chart for AEterna Zentaris, you'll notice that this stock has been uptrending strong for the last two months and change, with shares soaring from its low of $1.75 to its recent high of $3.45 a share. During that uptrend, shares of AEZS have been consistently making higher lows and higher highs, which is bullish technical price action. Shares of AEZS have now started to move back above its 200-day moving average of $2.80 a share and are quickly moving within range of triggering a major breakout trade.Traders should now look for long-biased trades in AEZS if it manages to break out above some key overhead resistance levels at $3.45 to $3.55 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 781,921 shares. If that breakout triggers soon, then AEZS will set up to re-test or possibly take out its next major overhead resistance levels at $4.56 to just over $5 a share. Keep in mind that that if AEZS triggers that move it will also have a chance to re-fill some of its previous gap down zone from last October that starts above $3.75 a share. Traders can look to buy AEZS off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $2.67 a share or around its 50-day at $2.47 a share. One could also buy AEZS off strength once it clears those breakout levels with volume and then simply use a stop that sits just below $3.20 a share.