Another biotechnology player that's starting to trend within range of triggering a big breakout trade is
), which discovers and develops RNA-based therapeutics for the treatment of rare and infectious diseases. Its lead product candidate is eteplirsen. This stock has been under attack by the bears so far in 2013, with shares off sharply by 39%
>>Profit From 5 Trades Warren Buffett Made
If you take a look at the chart for Sarepta Therapeutics, you'll notice that this stock recently gapped down sharply from $37.80 to under $12 a share with heavy downside volume. Following that gap down, shares of SRPT have started to rebound and uptrend from $12.12 to its intraday high on Friday of $15.88 a share. That move is quickly pushing shares of SRPT within range of triggering a big breakout trade above its gap down day high.
Traders should now look for long-biased trades in SRPT if it manages to break out above Friday's high of $15.88 to its gap down day high at $16.70 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 2.82 million shares. If that breakout hits soon, then SRPT will set up to re-fill some of its previous gap down zone that started at $37.80 a share. Some possible upside targets if SRPT gets into that gap with volume are $20 to $25 a share.
Traders can look to buy SRPT off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $14.50 a share. One could also buy SRPT off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.