4 Breakout Biotech Stocks Under $10 to Watch

DELAFIELD, Wis. (Stockpickr) -- As part of your daily routine as an active trader or investor, it's important to track 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 who want to capture some of that massive volatility. Stocks that are making big-percentage moves 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.

Catalyst Pharmaceuticals

Catalyst Pharmaceuticals  (CPRX), a development-stage biopharmaceutical company, focuses on the development and commercialization of prescription drugs targeting rare (orphan) neurological diseases and disorders. This stock is trading up 5% to $4.12 share in Thursday's trading session.

Thursday's Range: $3.94-$4.13
52-Week Range: $2.13-$5.10
Thursday's Volume: 597,000
Three-Month Average Volume: 837,273

From a technical perspective, Catalyst Pharmaceuticals is ripping sharply higher here right off its 50-day moving average of $3.92 with decent upside volume flows. This stock has been uptrending over the last month and change, with shares moving higher from its low of $3.15 to its recent high of $4.19 a share. During that uptrend, shares of Catalyst Pharmaceuticals have been making mostly higher lows and higher highs, which is bullish technical price action. That uptrend is also coming after this stock gapped down huge in April from around $4.80 to its low of $2.71 with massive downside volume. This spike to the upside on Thursday is now starting to push this stock within range of triggering a major breakout trade. That trade will hit if Catalyst Pharmaceuticals manages to take out some key near-term overhead resistance at $4.19 with high volume.

Traders should now look for long-biased trades in Catalyst Pharmaceuticals as long as it's trending above its 50-day moving average $3.92 or above more near-term support at $3.79 and then once it sustains a move or close above $4.19 with volume that registers near or above 837,273 shares. If that breakout develops soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $4.87 to its 52-week high of $5.10 a share.

Idera Pharmaceuticals

Idera Pharmaceuticals  (IDRA), a clinical-stage biopharmaceutical company, focuses on the discovery, development and commercialization of novel therapeutics for oncology and rare diseases in the U.S. This stock is trading up 2.6% to $3.81 in Thursday's trading session.

Thursday's Range: $3.71-$3.84
52-Week Range: $1.94-$5.48
Thursday's Volume: 1 million
Three-Month Average Volume: 1.87 million

From a technical perspective, Idera Pharmaceuticals is trending notably higher here right above its 200-day moving average of $3.49 with decent upside volume flows. This stock has been uptrending over the last month and change, with shares moving higher from its low of $2.65 to its recent high of $3.91. During that uptrend, this stock has been consistently making higher lows and higher highs, which is bullish technical price action. This spike higher on Thursday is now starting to push shares of Idera Pharmaceuticals within range of triggering a major breakout trade above some key near-term overhead resistance levels. That breakout will trigger if this stock manages to clear resistance at $3.91 to $3.92 with high volume.

Traders should now look for long-biased trades in Idera Pharmaceuticals as long as it's trending above its 200-day moving average of $3.49 or above its 50-day moving average of $3.32 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.87 million shares. If that breakout gets started soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $4.60 to $5 a share, or even $5.24 a share.

Celladon

Celladon  (CLDN), a clinical-stage biotechnology company, focuses on developing cardiovascular gene therapy and calcium dysregulation. This stock is trading up 2.3% to $2.22 in Thursday's trading session.

Thursday's Range: $2.18-$2.26
52-Week Range: $2.01-$28.25
Thursday's Volume: 466,000
Three-Month Average Volume: 1.95 million

From a technical perspective, Celladon is spiking modestly higher here right above some near-term support at $2.07 a share with lighter-than-average volume. This stock has attempted to form a double bottom chart pattern over the last month and change, with shares finding buying interest at $2.01 and $2.07. This stock has now started to spike a bit higher off those support levels and it's beginning to move within range of triggering a major breakout trade. That breakout will trigger if this stock manages to take out some key near-term overhead resistance levels at $2.36 to $2.65 with high volume.

Traders should now look for long-biased trades in Celladon as long as it's trending above those near-term support levels at $2.07 or at $2.01 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.95 million shares. If that breakout begins soon, then this stock will set up to re-test or possibly take out its next major overhead resistance level at $2.76 to around $2.90 a share. Any high-volume move above those levels will then give Celladon a chance to re-fill some of its previous gap-down-day zone from April that started around $14 a share.

Achaogen

Achaogen  (AKAO), clinical-stage biopharmaceutical company, discovers, develops and commercializes antibacterials to treat multi-drug resistant gram-negative infections in the U.S. This stock is trading up 3.1% to $5.77 in Thursday's trading session.

Thursday's Range: $5.62-$5.78
52-Week Range: $5.30-$17.31
Thursday's Volume: 46,000
Three-Month Average Volume: 176,000

From a technical perspective, Achaogen is spiking modestly higher here right off some near-term support at $5.56 with lighter-than-average volume. This stock has been attempting to carve out a major bottoming chart pattern over the last month and change, with shares finding strong buying interest each time it has pulled back to around $5.50 to $5.30 a share. Shares of Achaogen are now starting to spike higher off those major support levels and it's beginning to move within range of triggering a big breakout trade. That breakout will trigger if this stock manages to take out its 50-day moving average of $6.06 to some more near-term overhead resistance at $6.21 with high volume.

Traders should now look for long-biased trades in Achaogen as long as it's trending above those major bottom support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 176,000 shares. If that breakout kicks off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $6.93 to $7 a share, or even $7.50 to $8 a 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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