4 Biotech Stocks Under $10 to Trade for Breakouts

 DELAFIELD, Wis. (Stockpickr) -- As part of a daily routine as an active trader or investor, one should always be tracking the stocks in the market that are making the biggest percentage gains and the biggest percentage losses.

Stocks that are making large moves to the upside 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 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.

Vanda Pharmaceuticals

Vanda Pharmaceuticals  (VNDA), a biopharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system disorders. This stock is trading up 6.6% to $9.93 in Thursday's trading session.

Thursday's Range: $9.45-$10.18
52-Week Range: $8.34-$16.50
Thursday's Volume: 478,000
Three-Month Average Volume: 763,723

From a technical perspective, VNDA is ripping higher here and breaking out above some near-term overhead resistance levels at $9.71 to its 50-day moving average of $9.90 with decent upside volume flows. This stock recently formed a double bottom chart pattern at $8.80 to $8.92. Following that bottom, shares of VNDA have spiked higher and it's now approaching another major breakout trade. That trade will hit if VNDA manages to take out some key overhead resistance at $10.30 with high volume.

Traders should now look for long-biased trades in VNDA as long as it's trending above $9.71 or above $9.50 and then once it sustains a move or close above $10.30 with volume that hits near or above 763,723 shares. If that breakout hits soon, then VNDA will set up to re-test or possibly take out its next major overhead resistance levels at $10.75 to $11, or even $11.31 to its 200-day moving average of $11.61.

Pernix Therapeutics

Pernix Therapeutics  (PTX), a specialty pharmaceutical company, develops, manufactures, markets and sells branded and generic pharmaceutical products. This stock is trading up 6.5% to $6.86 in Thursday's trading session.

Thursday's Range: $6.59-$6.92
52-Week Range: $4.20-$12.88
Thursday's Volume: 652,000
Three-Month Average Volume: 1.06 million

From a technical perspective, PTX is ripping sharply higher here right above some near-term support at $6.35 with decent upside volume flows. This stock has been downtrending badly over the last few weeks, with shares dropping sharply lower from its high of $11.02 to its recent low of $6.15. During that downtrend, shares of PTX have been making mostly lower highs and lower lows, which is bearish technical price action. That said, this stock has now started to potentially reverse that downtrend and spike higher and it's beginning to trend within range of triggering a near-term breakout trade. That trade will hit if PTX manages to take out some key near-term overhead resistance levels at $7 to $7.04 with high volume.

Traders should now look for long-biased trades in PTX as long as it's trending above Thursday's intraday low of $6.59 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.06 million shares. If that breakout begins soon, then PTX will set up to re-test or possibly take out its next major overhead resistance levels at $7.50 to $8 a share, or even $8.50 to its 200-day moving average of $8.91 a share.

Cytosorbents

Cytosorbents  (CTSO), a critical-care-focused immunotherapy company, engages in the research, development and commercialization of medical devices with its platform blood purification technology incorporating a proprietary adsorbent polymer technology. This stock is trading up 1.8% to $7.34 in Thursday's trading session.

Thursday's Range: $7.09-$7.43
52-Week Range: $4.40-$15.24
Thursday's Volume: 42,000
Three-Month Average Volume: 320,426

From a technical perspective, CTSO is spiking a bit higher here right off $7 a share with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $6.80 to $6.82. Following that bottom, shares of CTSO have now started to trend higher and it's beginning to move within range of triggering a near-term breakout trade. That trade will trigger if CTSO manages to take out some near-term overhead resistance levels at its 200-day moving average of $7.58 with high volume.

Traders should now look for long-biased trades in CTSO as long as it's trending above some near-term support at $7 or above those double bottom support levels and then once it sustains a move or close above its 200-day at $7.58 with volume that hits near or above 320,426 shares. If that breakout triggers soon, then CTSO will set up to re-test or possibly take out its next major overhead resistance levels at $8.30 to around $9, or even its 50-day moving average of $9.93.

Hemispherx Biopharma

Hemispherx Biopharma  (HEB), a specialty pharmaceutical company, engages in the clinical development of new drug therapies based on natural immune-system-enhancing technologies for the treatment of viral and immune based chronic disorders in the U.S. This stock is trading up 0.50% to 27 cents per share in Thursday's trading session.

Thursday's Range: $0.26-$0.279
52-Week Range: $0.21-$0.40
Thursday's Volume: 1.54 million
Three-Month Average Volume: 1.79 million

From a technical perspective, HEB is moving modestly higher here right off its 200-day moving average of 27 cents per share with above-average volume flows. this stock has been uptrending strong over the last month and change, with shares moving higher from its low of 21 cents per share to its intraday high of around 27 cents per share. During that uptrend, shares of HEB have been making mostly higher lows and higher highs, which is bullish technical price action. This strong trend is now pushing shares of HEB within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will hit if HEB manages to take out some near-term overhead resistance levels at 27 to just over 28 cents per share with high volume.

Traders should now look for long-biased trades in HEB as long as it's trending above some near-term support levels at 26 cents to its 50-day moving average of 24 cents per share and then once it sustains a move or close above those breakout levels with volume that registers near or above 1.79 million shares. If that breakout develops soon, then HEB will set up to re-test or possibly take out its next major overhead resistance levels at 33 cents per share to its 52-week high of 40 cents per share.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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