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Theravance ( THRX) is a biopharmaceutical company with a pipeline of internally discovered product candidates and strategic collaborations with pharmaceutical companies. This stock is trading up 3.9% at $29.45 in recent trading.

Today's Volume: 694,000

Average Volume: 491,792

Volume % Change: 62%

Shares of THRX are moving smartly to the upside today after Piper Jaffray raised its price target on the stock due to its positive LAMA/LABA Phase III data and maintains its overweight rating on the shares.

>>5 Health Care Stocks Setting Up to Break Out

From a technical perspective, THRX is showing some follow-through momentum buying here with high volume. This stock has been in a monster uptrend for the last month and change, with shares rally from a low of $17.06 to today's high of $29.87. During that move, shares of THRX have been making higher lows and higher highs, which is bullish technical price action. This move today has also pushed THRX into major breakout territory, since the stock has moved above some past overhead resistance at $28.95.

Traders should now look for long-biased trades as long as THRX is trending above $28.95 to $28.25 with strong upside volume flows. I would consider any upside volume day that registers near or above 491,792 shares as bullish. If we continue to see that action, then THRX could hit $32 to $35 in the near future.

Keep in mind, though, that this stock is getting overbought since its relative strength index reading is now 81.49. Only look for long trades if THRX can hold the breakout and today's low.

As of the most recently reported quarter, Theravance was one of Seth Klarman's Baupost Group holdings.

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