Cardiome Pharma (CRME), a biopharmaceutical company, engages in the discovery, development and commercialization of therapies that enhance the health of patients. This stock closed up 6.3% to $6.49 in Tuesday's trading session.
Tuesday's Range: $6.08-$6.55
52-Week Range: $1.60-$7.15
Tuesday's Volume: 110,000
Three-Month Average Volume: 156,727
From a technical perspective, CRME spiked higher here right off some near-term support at $6 with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $5.85 to $6. Since forming that bottom, shares of CRME have now started to spike higher and move within range of triggering a major breakout trade. That trade will hit if CRME manages to take out some key near-term overhead resistance levels at $6.95 to its 52-week high at $7.15 with high volume.
Traders should now look for long-biased trades in CRME as long as it's trending above $6 or above $5.85 and then once it sustains a move or close above those breakout levels with volume that hits near or above 156,727 shares. If that breakout hits soon, then CRME will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $9 to $10.