Curis

One more breakout play that also comes out of the biotech complex is Curis ( CRIS). This is a drug discovery and development firm committed to leveraging signaling pathway drug technologies in seeking to develop targeted cancer therapies. Curis conducts its research programs both internally and through strategic collaborations. This is another major winner so far in 2011 with shares up over 110%.

If you take a look at the chart for Curis, you'll see that this stock has started to break out above some near-term overhead resistance at around $4 to $4.03 a share on big volume. This move started today and volume has already clocked in at over 765,000 shares which is well above its three-month average action of 573,000 shares. Some of this bullish behavior in CRIS could be traders getting into the stock ahead of their earnings report which is due out on July 28.

This move today now sets up CRIS for a second major breakout if it can manage to trade above some big overhead resistance at around $4.42 a share. A move above that level should generate some notable interested among momentum traders since it would mark a new 52-week high for CRIS. One could be a buyer of this stock once it clears $4.42 or you could buy below that level and anticipate the breakout. One could simply stop out of the trade if you see CRIS trade back below $4.00 a share on heavy volume. The all-time high on this stock is just above $6 a share, so this stock could be setting up to challenge or take out those highs soon.

It's worth pointing out that CRIS is a heavily shorted stock. The current short interest as a percentage of the float for CRIS is a rather large 7.5%. The short-sellers have also been increasing their bets from the last reporting period by 11.3%, or by about 564,000 shares. A major breakout for CRIS could easily spark some big short covering that powers the stock higher in the coming days or weeks.

To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.    

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.
Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.

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