Another under-$10 biotechnology player that's starting to trend within range of triggering a major breakout trade is Novavax ( NVAX), a clinical-stage biopharmaceutical company focused on developing recombinant protein nanoparticle vaccines to address a range of infectious diseases. This stock has been a monster for the bulls so far in 2013, with shares up a whopping 445%.
If you take a look at the chart for Novavax, you'll notice that this stock has been uptrending for the last few weeks, with shares moving higher from its low of $2.68 to its intraday high of $3.27 a share. During that move, shares of NVAX have been consistently making higher lows and higher highs, which is bullish technical price action. That move is quickly pushing shares of NVAX within range of triggering a major breakout trade.Market players should now look for long-biased trades in NVAX if it manages to break out above some near-term overhead resistance levels at $3.39 a share to its 52-week high at $3.50 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 3 million shares. If that breakout triggers soon, then NVAX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $5 to $6 a share. Traders can look to buy NVAX off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $3 to $2.68 a share. One can also buy NVAX off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.