This Day On The Street
Continue to site
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

5 Biotech Stocks to Trade for Breakouts

BG Medicine

One diagnostics player that could be setting up to rip sharply higher here is BG Medicine (BGMD - Get Report), which engages in the development and commercialization of novel cardiovascular diagnostic tests to address unmet medical needs in the U.S. This stock has been in play with the bulls big time over the last three months, with shares up sharply by 117%.

If you consult the chart for BG Medicine, you'll see that this stock has been uptrending over the last few weeks, with shares moving higher from its low of $1.10 to its recent high of $1.38 a share. During that uptrend, shares of BGMD have been consistently making higher lows and higher highs, which is bullish technical price action. That move is now starting to push shares of BGMD within range of triggering a major breakout trade above a key downtrend line that started last December.

Must Read: 5 Stocks Ready to Explode on Bullish Earnings

Traders should now look for long-biased trades in BGMD if it manages to break out above some near-term overhead resistance levels at $1.30 to $1.38 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 2.08 million shares. If that breakout hits soon, then BGMD will set up to re-test or possibly take out its next major overhead resistance levels at $1.57 to $1.65 a share or $1.70 a share. Any high-volume move above those levels will then give BGMD a chance to tag $2 to $2.20 a share.

Traders can look to buy BGMD off any weakness to anticipate that breakout and simply use a stop that sits right below its 200-day moving average of $1.09 a share. One can also buy BGMD off strength once it starts to rip above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
BIOD $0.36 3.50%
CNDO $2.99 0.67%
GALT $2.24 1.40%
ICPT $182.81 -0.44%
BGMD $0.57 -3.30%


Chart of I:DJI
DOW 17,845.49 +33.30 0.19%
S&P 500 2,090.64 +1.50 0.07%
NASDAQ 5,118.5510 +15.7430 0.31%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs