Chelsea Therapeutics

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Chelsea Therapeutics ( CHTP) is a development stage pharmaceutical company that focuses on acquiring, developing and commercializing products for the treatment of a variety of human diseases. This stock is trading up 4.7% at $1.39 in recent trading.

Today's Range: $1.26-$1.39

52-Week Range: $0.70-$5.74

Volume: 642,000

Three-Month Average Volume: 1.2 million

>>5 Stocks Under $10 Setting Up to Break Out

From a technical perspective, CHTP is bouncing sharply to the upside here right off some near-term support at $1.20 with light volume. This move is starting to push CHTP within range of triggering a near-term breakout trade. That trade will hit once CHTP takes out some near-term overhead resistance levels at $1.48 to $1.54 with high volume.

Traders should now look for long-biased trades in CHTP as long as it's trending above $1.20, and then once it sustains a move or close above those breakout levels with volume that's near or above 1.2 million shares. If that breakout triggers soon, then CHTP will have a great chance of re-testing or possibly taking out its next major overhead resistance levels at $1.99 to $2.30, or possibly even its 200-day moving average at $2.71.

To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher 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.

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