EnteroMedics

EnteroMedics ( ETRM) is a development-stage medical device company engaged in the design and development of devices that use neuroblocking technology to treat obesity, its associated co-morbidities and other gastrointestinal disorders. This stock closed up 7.6% to $1.12 in Tuesday's trading session.

Tuesday's Range: $1.02-$1.13
52-Week Range: $0.81-$4.14
Tuesday's Volume: 735,000
Three-Month Average Volume: 698,086

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From a technical perspective, ETRM spiked sharply higher here back above its 50-day moving average of $1.10 with above-average volume. This stock is starting to move within range of triggering a breakout trade above a key descending trendline that started back in late May. That breakout will hit if ETRM manages to take out some near-term overhead resistance levels at $1.14 to $1.18 with high volume.

Traders should now look for long-biased trades in ETRM as long as it's trending above some near-term support at $1.01 and then once it sustains a move or close above those breakout levels with volume that hits near or above 698,086 shares. If that breakout hits soon, then ETRM will set up to re-test or possibly take out its next major overhead resistance levels at $1.30 to $1.47. Any high-volume move above $1.47 will then give ETRM a chance to re-fill its previous gap-down zone from last February that started near $3.

Cornerstone Therapeutics

Cornerstone Therapeutics ( CRTX) is a specialty pharmaceutical company which commercializes products for the hospital and adjacent specialty markets. This stock closed up 9.6% to $8.21 in Tuesday's trading session.

Tuesday's Range: $8.20-$8.31
52-Week Range: $3.10-$10.37
Tuesday's Volume: 244,000
Three-Month Average Volume: 87,460

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From a technical perspective, CRTX spiked sharply higher here back above its 50-day moving average of $8.68 with heavy upside volume. This move also pushed shares of CRTX into breakout territory, since the stock took out some near-term overhead resistance levels at $8.35 to $8.95.

Traders should now look for long-biased trades in CRTX as long as it's trending above its 50-day at $8.68 or above that breakout level of $8.35 and then once it sustains a move or close above Tuesday's high of $9.20 with volume that hits near or above 87,460 shares. If we get that move soon, then CRTX will set up to re-test or possibly take out its next major overhead resistance levels at $10 to its 52-wek high at $10.37. Any high-volume move above those levels will then give CRTX a chance to tag $11 to $12.

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