4 Biotech Stocks Under $10 to Trade for Breakouts

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

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.

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

AcelRx Pharmaceuticals (ACRX), a development stage specialty pharmaceutical company, focuses on the development and commercialization of therapies for the treatment of acute and breakthrough pain. This stock closed up 6.7% to $6.96 in Thursday's trading session.

Thursday's Range: $6.44-$7.11
52-Week Range: $6.04-$13.65
Thursday's Volume: 2.35 million
Three-Month Average Volume: 1.02 million

From a technical perspective, ACRX ripped sharply higher here with strong upside volume flows. This stock recently gapped down big from $11.38 to its recent low of $6.11 with heavy downside volume. Following that gap, shares of ACRX have started to rebound sharply higher with decent upside volume flows. This rebound is quickly pushing shares of ACRX within range of triggering a near-term breakout trade. That trade will hit if ACRX manages to take out Thursday's intraday high of $7.11 to its gap-down-day high of $7.33 with high volume.

Traders should now look for long-biased trades in ACRX as long as it's trending above Thursday's intraday low of $6.44 or above that recent gap low of $6.11 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.02 million shares. If that breakout hits soon, then ACRX will set up to re-fill some of that previous gap-down-day zone from this week that started at $11.38.

Ohr Pharmaceutical (OHRP) operates as a biotechnology company. This stock closed up 1% to $9.00 in Thursday's trading session.

Thursday's Range: $8.27-$9.09
52-Week Range: $5.65-$20.00
Thursday's Volume: 251,000
Three-Month Average Volume: 610,466

From a technical perspective, OHRP trended modestly higher here right above some near-term support at $8.04 and back above its 50-day moving average of $8.66 with lighter-than-average volume. This move is starting to push shares of OHRP within range of triggering a near-term breakout trade. That trade will hit if OHRP manages to take out Thursday's intraday high of $9.09 to some more near-term overhead resistance at $9.16 with high volume.

Traders should now look for long-biased trades in OHRP as long as it's trending above Thursday's intraday low of $8.27 or above more near-term support at $8.04 and then once it sustains a move or close above those breakout levels with volume that hits near or above 610,466 shares. If that breakout triggers soon, then OHRP will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $ 9.98 to around $11.

Threshold Pharmaceuticals (THLD), a biotechnology company, discovers and develops therapeutic agents that target tumor cells for the treatment of patients living with cancer in the U.S. This stock closed up 0.4% to $4.21 in Thursday's trading session.

Thursday's Range: $4.06-$4.25
52-Week Range: $3.51-$5.93
Thursday's Volume: 541,000
Three-Month Average Volume: 387,942

From a technical perspective, THLD bounced modestly higher here right off its 50-day moving average of $4.05 with above-average volume. This stock recently formed a triple bottom chart pattern at $3.98, $3.95 and $3.97. Following that bottom, shares of THLD have now started to rebound higher and it's quickly moving within range of triggering a big breakout trade. That trade will hit if THLD manages to take out some key near-term overhead resistance levels at $4.36 to $4.44 and then once it takes out its 50-day moving average of $4.45 with high volume.

Traders should now look for long-biased trades in THLD as long as it’s trending above those triple bottom support levels or above more near-term trend line support at $3.84 and then once it sustains a move or close above those breakout levels with volume that hits near or above 387,942 shares. If that breakout materializes soon, then THLD will set up to re-test or possibly take out its next major overhead resistance levels at $4.67 to $4.88, or even $5.20.

CorMedix (CRMD), a development-stage pharmaceutical and medical device company, intends to in-license, develop and commercialize therapeutic products for the treatment of cardiorenal and infectious diseases. This stock closed up 4.7% to $2.00 a share in Thursday's trading session.

Thursday's Range: $1.85-$2.02
52-Week Range: $0.66-$3.20
Thursday's Volume: 53,000
Three-Month Average Volume: 82,094

From a technical perspective, CRMD jumped higher here right above some near-term support at $1.72 with lighter-than-average volume. This counter-trend move higher on Thursday is starting to push shares of CRMD within range of triggering a big breakout trade. That trade will hit if CRMD manages to take out Thursday's intraday high of $2.02 to some more key overhead resistance levels at $2.15 to $2.21 with high volume.

Traders should now look for long-biased trades in CRMD as long as it's trending above its 200-day moving average of $1.69 and then once it sustains a move or close above those breakout levels with volume that hits near or above 82,094 shares. If that breakout kicks off soon, then CRMD will set up to re-test or possibly take out its next major overhead resistance levels at $2.65 to $3.

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.

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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.

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