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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Biotech Stocks to Trade for Breakouts

 DELAFIELD, Wis. (Stockpickr) -- The biotech sector is on fire -- and I mean a five-alarm fire!

Just take a look at the performance of the iShares Nasdaq Biotechnology Index (IBB), which is already up 20% so far in 2014. Over the last year, the IBB has risen an even more impressive 87%. As a trend-following trader, I look for a hot sector first, and then I drill down into that sector to find favorable chart setups. I have been doing this for quite some time with the red-hot biotech sector.

One of my recent biotech stock picks that's exploding higher today is Inovio Pharmaceuticals (INO), which I featured in Feb. 10's "5 Biotech Stocks to Trade in February" at $2.72 share. I mentioned in that piece that traders should keep an eye on shares of INO for a big breakout trade if it could manage to take out some near-term overhead resistance levels at $2.97 to $3 a share with high volume.

>>5 Stocks Ready to Explod on Bullish Earnings

Guess what happened? Shares of INO exploded higher last Friday and took out those key overhead resistance levels with monster upside volume. Shares of INO are exploding higher again today, with the stock up 13% at $3.66 as I write. I knew the biotech sector was hot and that INO was the perfect setup, and I don't think this stock is done with its move. Traders should now watch for INO to clear $4 a share with strong volume for potentially more upside.

Despite all the bubble talk, I don't think the biotech sector is anywhere near done going higher. This sector has a lot of favorable headwinds, including faster drug approval legislation, M&A activity and, my favorite, a clear uptrend in place. For those reasons, I want to continue to dig into this sector to find the next explosive movers.

With that in mind, here's a look at five potentially explosive biotech stock plays.

1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 17,076.48 -37.06 -0.22%
S&P 500 1,986.40 +2.87 0.14%
NASDAQ 4,471.2540 +15.2380 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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