This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

4 Biotech Stocks to Watch for Breakout Trades

Stocks in this article: SGMO ENTA INSM


Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Insmed ( INSM), a development-stage biopharmaceutical company, develops inhaled treatments for serious lung infections. This stock closed up 9.3% to $11.78 on Wednesday.

Wednesday's Volume: 2.63 million
Average Volume: 579,248
Volume % Change: 294%

Shares of INSM soared higher on Wednesday after the company priced 6 million shares of common stock at a price of $10.40 per share. The offering raised nearly $60 million and the company said it plans to use the cash for continued development of its Arikace, an antibiotic used to treat lung infections.

>>5 Rocket Stocks Ready for Blastoff in July

From a technical perspective, INSM gapped higher here back above its 50-day moving average of $11.47 with strong upside volume. This move is quickly pushing shares of INSM within range of triggering a near-term breakout trade. That trade will hit if INSM manages to take out some near-term overhead resistance levels at $12.17 to $12.22 with high volume.

Traders should now look for long-biased trades in INSM as long as it's trending above Wednesday's low of $11.32 and then once it sustains a move or close above those breakout levels with volume that hits near or above 579.248 shares. If that breakout triggers soon, then INSM will set up to re-test or possibly take out its next major overhead resistance levels at $13.45 to its 52-week high at $14.30. Keep in mind that INSM is just coming out of a vicious downtrend, so that breakout needs to happen soon to increase the probability a successful breakout trade.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs