Northwest Biotherapeutics

Another stock that's starting to move within range of triggering a big breakout trade is Northwest Biotherapeutics (NWBO), a development-stage biotechnology company engaged in discovering, developing and commercializing immunotherapy products to treat cancers in the U.S. This stock has been in play with the bulls over the last three months, with shares moving higher by 26%.

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If you look at the chart for Northwest Biotherapeutics, you'll notice that this stock has been uptrending strong over the last month and change, with shares moving higher from its low of $3.20 to its recent high of $4.62 a share. During that uptrend, shares of NWBO have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of NWBO within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in NWBO if it manages to break out above some near-term overhead resistance levels at $4.62 to $4.75 a share and then once it takes out some more key overhead resistance levels at $5 to $5.25 a 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 139,514 shares. If that breakout hits soon, then NWBO will set up to re-fill some of its previous gap-down-day zone from last November that started at $6.89 a share.

Traders can look to buy NWBO off any weakness to anticipate that breakout and simply use a stop that sits right around its 200-day moving average at $3.70 a share.. One can also buy NWBO off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

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