One more under-$10 stock that's trending very close to triggering a near-term breakout trade is Raptor Pharmaceuticals (RPTP), which researches, produces and delivers medicines. Its pipeline includes both candidates from its proprietary drug targeting platforms and in-licensed and acquired product candidates. This stock has trended lower so far in 2013, with shares off by 9.9%.
If you take a look at the chart for Raptor Pharmaceuticals, you'll see that this stock has just started to trend back above its 200-day moving average of $5.20 a share with heavy upside volume flows. This move is quickly pushing shares of RPTP within range of triggering a near-term breakout trade.
Traders should now look for long-biased trades in RPTP if it manages to break out above some near-term overhead resistance at $5.29 a share to its 50-day at $5.40 a share and then above more resistance at $5.56 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 403,825 shares. If that breakout triggers soon, then RPTP will set up to re-test or possibly take out its next major overhead resistance levels at $5.95 to $6.28 a share. Any high-volume move above $6.28 will then put $7 to $7.50 into range for shares of RPTP.Traders can look to buy RPTP off any weakness to anticipate that breakout and simply use a stop that sits right below its 200-day at $5.20 a share or around $5 a share. One could also buy RPTP off strength once it clears those breakout levels with volume and then simply use the same stop that sits just below its 200-day at $5.20 a share. I would add to either position if RPTP takes out $5.56 a share with volume. To see more hot under-$10 equities, check out the Stocks Under $10 Setting Up to Explode portfolio on Stockpickr. -- Written by Roberto Pedone in Winderemere, Fla.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV