Biotech Stocks Triggering Breakout Trades: Columbia Labs

DELAFIELD, Wis. (Stockpickr) -- These three biotech stocks are within range of triggering breakout trades.

Columbia Laboratories (CBRX) engages in the research, development and commercialization of women's health care and endocrinology products. This stock closed up 3.9% to $7.04 in Wednesday's trading session.

Wednesday's Range: $6.76-$7.05
52-Week Range: $4.48-$8.37
Thursday's Volume: 29,000
Three-Month Average Volume: 59,108

From a technical perspective, CBRX spiked sharply higher here right above its 50-day moving average of $6.68 with lighter-than-average volume. This move pushed shares of CBRX into breakout territory, since the stock took out some near-term overhead resistance at $6.98. Shares of CBRX are now quickly moving within range of triggering another big breakout trade. That trade will hit if CBRX manages to take out some near-term overhead resistance levels at $7.14 to $7.34 and then $7.58 to $7.80 with high volume.

Traders should now look for long-biased trades in CBRX as long as it's trending above its 50-day at $6.68 or above its 200-day at $6.45 and then once it sustains a move or close above those breakout levels with volume that hits near or above 59,108 shares. If that breakout triggers soon, then CBRX will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high at $8.37 to $9.84.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

Follow Stockpickr on Twitter and become a fan on Facebook.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

If you liked this article you might like

Healthcare Sector: High Quality Stocks At A Great Value

Healthcare Sector: High Quality Stocks At A Great Value

Columbia Laboratories's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Columbia Laboratories's CEO Discusses Q2 2012 Results - Earnings Call Transcript

A Classic Biotech Long Shot

A Classic Biotech Long Shot

Columbia Stock Gaps Down On Today's Open (CBRX)

Columbia Stock Gaps Down On Today's Open (CBRX)