Another biotech stock that's moving within range of triggering a major breakout trade is Palatin Technologies ( PTN), which is engaged in the development of peptide, peptide mimetic and small molecule agonist compounds with a focus on melanocortin and natriuretic peptide receptor systems. This stock has been on fire so far in 2012, with shares up sharply by over 70%. >>4 Biotech Stocks Under $10 Moving Higher If you look at the chart for Palatin Technologies, you'll notice that this stock has been trending sideways for the last month and a half, with shares moving between 55 cents on the downside and 80 cents on the upside. Shares of PTN have now started to bounce right off its 50-day moving average of 66 cents, and it's quickly moving within range of triggering a major breakout trade above some near-term overhead resistance levels. Market players should now look for long-biased trades in PTN if it can manage to break out above some near-term overhead resistance at 75 to 80 cents per 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 53,589 shares. If that breakout triggers soon, then PTN could make an explosive move back toward its July high of $1.20 a share. One can look to buy PTN off any weakness to anticipate that breakout and then simply use a stop that sits just below its 200-day moving average at 65 cents per share. Traders can also buy off strength once PTN triggers that breakout above 75 to 80 per share with high volume and then simply use a stop a few percentage points below 75 cents or down by its 50-day at 66 cents per share.