4 Biotech Stocks Spiking on Unusual Volume

WINDERMERE, Fla. ( Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Huge Trades for a Volatile 2013

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

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With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.

Arena Pharmaceuticals ( ARNA)

This is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing oral drugs that target G protein-coupled receptors. This stock is trading up 5.9% to $9.74 in recent trading.

Today's Range: $9.31-$9.83

52-Week Range: $1.54-$13.50

Volume: 15.06 million

Three-Month Average Volume: 8.13 million

From a technical perspective, ARNA is ripping higher here right above its 50-day moving average of $8.73 with heavy upside volume. This stock has been uptrending for the last two months, with shares moving higher from its low of $7.09 to its intraday high of $9.83. During that move, shares of ARNA have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed ARNA within range of triggering a breakout trade. That trade will hit if ARNA takes out some key overhead resistance levels at $9.57 to $10.05 with high volume.

Traders should now look for long-biased trades in ARNA as long as it's trending above $9, and then once it sustains a move or close above those breakout levels with volume that hits near or above 8.13 million shares. If that breakout triggers soon, then ARNA will set up to re-test or possibly take out its next major overhead resistance levels at $10.40 to $12.07.

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