One stem cell therapeutic player that's starting to trend within range of triggering a major breakout trade is Osiris Therapeutics ( OSIR), which is focused on developing and marketing products to treat medical conditions in the inflammatory, orthopedic and cardiovascular areas. This stock has been on fire so far in 2013, with shares ripping higher by 95%.
If you take a look at the chart for Osiris Therapeutics, you'll notice that this stock formed a major bottoming pattern over the last month and change, with shares finding buying interest each time it pulled back near $14 to $13 a share. Shares of OSIR have now started to rebound off those support levels and trend back above its 50-day moving average at $16.22 a share. That move is starting to push shares of OSIR within range of triggering a major breakout trade.Traders should now look for long-biased trades in OSIR if it manages to break out above some near-term overhead resistance levels at $17.95 to $19.75 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 366,419 shares. If that breakout triggers soon, then OSIR will set up for a possible run back towards its next major overhead resistance levels at $22 o its 52-week high at $27.40 a share. Traders can look to buy OSIR off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $16.22 a share, or near $15 a share. One can also buy OSIR off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.