2 Biotech Stocks Under $10 in Breakout Territory

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

>>5 Rocket Stocks to Buy This Week

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.

>>Side-Step the Selling With These 5 Big Trades

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

Onconova Therapeutics (ONTX), a clinical-stage biopharmaceutical company, focuses on discovering and developing small molecule drug candidates to treat cancer. This stock closed up 2.6% to $6.16 a share in Tuesday's trading session.

Tuesday's Range: $5.95-$6.27
52-Week Range: $5.23-$31.13
Tuesday's Volume: 409,000
Three-Month Average Volume: 374,210

From a technical perspective, ONTX trended modestly higher here right off $6 with slightly above-average volume. This move is quickly pushing shares of ONTX within range of triggering a major breakout trade. That trade will hit if ONTX manages to take out some key near-term overhead resistance levels at $6.25 to Tuesday's intraday high of $6.27 and then once it clears more key resistance at $6.49 with high volume.

Traders should now look for long-biased trades in ONTX as long as it's trending above some key near-term support at $5.60 and then once it sustains a move or close above those breakout levels with volume that hits near or above 374,210 shares. If that breakout triggers soon, then ONTX will set up to re-test or possibly take out its next major overhead resistance levels $7 to $8, or even $8.50 to $9.34.

Geron (GERN), a clinical-stage biopharmaceutical company, develops a telomerase inhibitor, imetelstat, to treat hematologic myeloid malignancies. This stock closed up 14.6% to $2.19 in Tuesday's trading session.

Tuesday's Range: $1.89-$2.29
52-Week Range: $0.41-$2.75
Tuesday's Volume: 9.71 million
Three-Month Average Volume: 6.36 million

From a technical perspective, GERN exploded higher here right above some near-term support at $1.75 with strong upside volume. This move pushed shares of GERN into breakout territory, since the stock took out some near-term overhead resistance levels at $2.06 to $2.18. Market players should now look for a continuation move higher in the short-term if GERN manages to take out Tuesday's high of $2.29 to more near-term overhead resistance at $2.53 with high volume.

Traders should now look for long-biased trades in GERN as long as it's trending above $2 or above Tuesday's low of $1.89 and then once it sustains a move or close above $2.29 to $2.53 volume that hits near or above 6.36 million shares. If that move gets underway soon, then GERN will set up to re-fill some of its previous gap-down-day zone from March that started just above $4.50. Some possible upside targets if GERN gets into that gap with volume are $3 to $3.50.

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.

At the time of publication, author had no positions in stocks mentioned. 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.

More from Investing

Bitcoin Today: Prices Come Off Highs as Rally to $10,000 Pauses

Bitcoin Today: Prices Come Off Highs as Rally to $10,000 Pauses

10 Key Takeaways From Facebook's Fear-Reducing Earnings Report

10 Key Takeaways From Facebook's Fear-Reducing Earnings Report

Abercrombie & Fitch CEO: We Aren't the Same Abercrombie You Once Knew

Abercrombie & Fitch CEO: We Aren't the Same Abercrombie You Once Knew

Amazon Wants to Use Your Car as a Mobile Warehouse - Here's What That Could Mean

Amazon Wants to Use Your Car as a Mobile Warehouse - Here's What That Could Mean

Ford Beats on First Quarter Earnings, Says Turnaround Well Under Way

Ford Beats on First Quarter Earnings, Says Turnaround Well Under Way