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

3 Biotech Stocks Breaking Out on Big Volume

 DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Must Read: Warren Buffett's Top 10 Dividend Stocks

Esperion Therapeutics (ESPR), a clinical stage biopharmaceutical company, focuses on the research, development and commercialization of oral, low-density lipoprotein cholesterol lowering therapies for the treatment of patients with hypercholesterolemia and other cardiometabolic risk markers. This stock closed up 4.9% at $14.96 in Wednesday's trading session.

Wednesday's Volume: 55,000
Three-Month Average Volume: 25,616
Volume % Change: 95%

From a technical perspective, ESPR ripped sharply higher here back above both its 200-day moving average at $14.70 and its 50-day moving average at $14.91 with above-average volume. This sharp spike higher briefly pushed shares of ESPR into breakout territory, since the stock flirted with some near-term overhead resistance at $15.13. Shares of ESPR are now starting to trend within range of triggering another big breakout trade. That trade will hit if ESPR manages to take out Wednesday's intraday high at $15.28 and then once it clears more key overhead resistance levels at $15.97 to $16.32 with high volume.

Traders should now look for long-biased trades in ESPR as long as it's trending above Wednesday's intraday low of $14.42 or above some more key near-term support at $13.90 and then once it sustains a move or close above those breakout levels with volume that's near or above 25,616 shares. If that breakout materializes soon, then ESPR will set up to re-test or possibly take out its next major overhead resistance levels at $17 to $18, or even $18.83 to $19.55.

1 of 3

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
BCRX $12.64 8.90%
RARE $106.93 8.00%
ESPR $26.56 12.00%
AAPL $109.38 -0.18%
FB $92.96 2.20%


Chart of I:DJI
DOW 16,611.14 +138.77 0.84%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs