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

Biotech Stocks on the Verge of Breakouts: Star Scientific

Stocks in this article: STSI

DELAFIELD, Wis. (Stockpickr) -- These three biotech stocks are within range of triggering breakout trades.

Star Scientific (STSI) engages in the development, manufacture, sale, and marketing of nutraceutical dietary supplements and consumer products. This stock closed up 4.9% to 75 cents per share in Wednesday's trading session.

Wednesday's Range: $0.70-$0.77
52-Week Range: $0.55-$2.59
Thursday's Volume: 1.46 million
Three-Month Average Volume: 1.54 million

From a technical perspective, STSI jumped sharply higher here and broke out above some near-term overhead resistance at 73 cents per share with decent upside volume. This stock has been downtrending badly over the last four months and change, with shares moving lower from its high of $2.59 to its recent low of 55 cents per share. During that downtrend, shares of STSI have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of STSI have started to reverse that downtrend and enter a new uptrend. This spike on Wednesday is quickly pushing shares of STSI within range of triggering another near-term breakout trade. That trade will hit if STSI manages to take out Wednesday's high of 77 cents to more resistance at 80 cents per share with high volume.

Traders should now look for long-biased trades in STSI as long as it's trending above some key near-term support levels at 69 cents to 65 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.54 million shares. If that breakout hits soon, then STSI will set up to re-test or possibly take out its next major overhead resistance levels at 90 cents to its 50-day moving average at 98 cents per share.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned. Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

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 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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