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.

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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.

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.

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