Another stock that's quickly trending within range of triggering a major breakout trade is CytRx (CYTR - Get Report), which is a research and development company specializing in oncology. Its oncology pipeline includes two programs in clinical development for cancer indications: aldoxorubicin and tamibarotene. This stock has been on fire so far in 2013, with shares ripping higher by 50%.
If you look at the chart for CytRx, you'll notice that this stock has been uptrending strong for the last two months, with shares soaring higher from its low of $1.83 to its recent high of $3.07 a share. During that uptrend, shares of CYTR have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now started to push shares of CYTR within range of triggering a major breakout trade.
Traders should now look for long-biased trades in CYTR if it manages to break out above some near-term overhead resistance levels at $2.92 to its 200-day at $2.99 and then once it clears more resistance at $3.07 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 volume of 158,000 shares. If that breakout triggers soon, then CYTR will set up to re-fill some of its previous gap down zone from last October that started above $3.50 a share. This stock could even trade north of $4 if that gap gets filled with volume.Traders can look to buy CYTR off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $2.65 to $2.56 a share or below its 50-day at $2.47 a share. One can also buy CYTR off strength once it takes out those breakout levels with volume and then simply use a stop just below $2.65 a share.