2 Biotech Stocks Under $10 to Watch

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

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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.

Oncothyreon

Oncothyreon ( ONTY) is a clinical-stage biopharmaceutical company that develops and markets synthetic vaccines and small molecules that treat the lives and outcomes of cancer patients. This stock closed up 1.6% to $1.89 in Tuesday's trading session.

Tuesday's Range: $1.84-$1.91
52-Week Range: $1.55-$5.16
Tuesday's Volume: 285,000
Three-Month Average Volume: 804,652

From a technical perspective, ONTY jumped modestly higher here back above its 50-day moving average of $1.87 with lighter-than-average volume. This stock recently formed a triple bottom chart pattern at $1.78, $1.79 and $1.75. Following that bottom, shares of ONTY have started to spike higher and push within range of triggering a near-term breakout trade. That trade will hit if ONTY manages to take out some near-term overhead resistance levels at $1.92 to $1.99 and then $2.16 with high volume.

Traders should now look for long-biased trades in ONTY as long as it's trending above some key near-term support at $1.75 and then once it sustains a move or close above those breakout levels with volume that hits near or above 804,652 shares. If that breakout hits soon, then ONTY will set up to re-test or possibly take out its next major overhead resistance levels at $2.43 to $2.70, or even $2.81. Any high-volume move above $2.81 will then give ONTY a chance to re-fill some of its previous gap down zone from late 2012 that started near $5.

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