Catalyst Pharmaceuticals Partners

Another stock in the biotechnology and drugs complex that's uptrending strong and nearing a major breakout trade is Catalyst Pharmaceuticals Partners ( CPRX), which is focused on the development and commercialization of prescription drugs targeting addiction and diseases of the central nervous system. This stock is off to a decent start in 2012, with shares up over 10% so far.

If you look at the chart for Catalyst Pharmaceuticals Partners, you'll notice that this stock has been uptrending very strong since it formed a perfect double bottom chart pattern back in June at 50 cents a share. After bottom at 50 cents, this stock exploded higher to its recent high of $1.64 a share. During that monster run, shares of CPRX have been making higher lows and higher highs, which is bullish technical price action. This stock has experienced a few pullbacks during the last month, and off each of those moves it has made higher lows. Now shares of CPRX are trending within range of triggering a major breakout trade.

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Traders should now look for long-biased trades in CPRX if it can manage to trigger a near-term breakout trade above some key overhead resistance levels at $1.50 to $1.64 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 539,561 shares. If we get that action soon, then CPRX will have a great chance of trading well north of $2 a share. It's even possible that CPRX could hit $3 a share off a high-volume breakout.

One could look to buy this stock off any weakness and simply anticipate that breakout. If you get long off weakness, then simply use a stop at around $1.34 a share or down to $1.20 a share as a last resort support zone. You could also get long off strength once $1.50 is cleared and then simply use a stop just below $1.34 to $1.25 a share.

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