One under-$10 stock that's trending very close to trigger a near-term breakout trade is Tekmira Pharmaceuticals (TKMR - Get Report), which is engaged in a biopharmaceutical business focused on advancing novel RNA interference therapeutics and providing its lipid nanoparticle delivery technology to pharmaceutical partners. This stock is off to a slow start in 2013, with shares off by 3.2%.
If you take a look at the chart for Tekmira Pharmaceuticals, you'll notice that this stock is just starting to trend back above its 50-day moving average of $4.70 a share with heavy upside volume. Volume so far today has already registered over 313,000 shares, which is well above its three-month average action of 33,912 shares. That move is quickly pushing shares of TKMR within range of triggering a near-term breakout trade.
Traders should now look for long-biased trades in TKMR if it manages to break out above some near-term overhead resistance levels at $4.87 to $4.94 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 action of 33,912 shares. If that breakout triggers soon, then TKMR will set up to re-test or possibly take out its next major overhead resistance levels at $5.53 to $5.78 a share. Any high-volume move above $5.78 will then put $6.78 into range for shares of TKMR.Traders can look to buy TKMR off any weakness to anticipate that breakout and simply use a stop that sits just below some near-term support at around $4.50 a share. One can also buy TKMR off strength once it takes out those breakout levels with volume and then simply use a stop that sits right below its 50-day moving average of $4.70 a share.