4 Biotech Stocks Under $10 to Trade for Breakouts

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.

Nexvet Biopharma

  • Tuesday's Range: $4.02-$4.32
  • 52-Week Range: $3.54-$11.00
  • Tuesday's Volume: 6,000
  • Three-Month Average Volume: 25,573

Nexvet Biopharma  (NVET), a biopharmaceutical company, focuses on developing and commercializing novel, species-specific biologics based on human biologics for companion animals. This stock is trading up 2.4% to $4.14 in Tuesday's trading session.

From a technical perspective, Nexvet Biopharma is ripping higher here and showing relative strength versus the overall market weakness with light volume. This stock has been uptrending over the last month, with shares moving higher from its low of $3.54 to its intraday high of $4.47. During that uptrend, shares of Nexvet Biopharma have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed this stock within range of triggering a big breakout trade above some key near-term overhead resistance levels. That trade will trigger if this stock manages to take out its 50-day moving average of $4.70 to around $5 with high volume.

Traders should now look for long-biased trades in Nexvet Biopharma as long as it's trending above some near-term support at $4 and then once it sustains a move or close above those breakout levels with volume that hits near or above 25,573 shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $5.45 to around $6 a share.

Sunesis Pharmaceuticals

  • Tuesday's Range: $1.21-$1.41
  • 52-Week Range: $0.84-$8.46
  • Tuesdays Volume: 928,000
  • Three-Month Average Volume: 2.24 million

Sunesis Pharmaceuticals  (SNSS), a biopharmaceutical company, focuses on the development and commercialization of oncology therapeutics for the treatment of solid and hematologic cancers. This stock is trading up 8.8% to $1.36 in Tuesday's trading session.

From a technical perspective, Sunesis Pharmaceuticals is ripping higher here and displaying relative strength versus the overall market weakness with lighter-than-average volume. This trend to the upside on Tuesday is now starting to push shares of Sunesis Pharmaceuticals within range of triggering a major breakout trade. That trade will trigger if this stock manages to take out some key near-term overhead resistance at $1.49 to $1.55 with high volume.

Traders should now look for long-biased trades in Sunesis Pharmaceuticals as long as it's trending above Tuesday's intraday low of $1.21 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.24 million shares. If that breakout hits soon, then this stock will set up to re-fill some of its previous gap-down-day zone from July that started near $3.50 a share.

Verastem

  • Tuesday's Range: $6.85-$7.59
  • 52-Week Range: $6.75-$12.35
  • Tuesday's Volume: 219,000
  • Three-Month Average Volume: 319,181

Verastem  (VSTM), a biopharmaceutical company, focuses on discovering and developing proprietary small molecule drugs targeting cancer stem cells. This stock is trading up 8.1% to $7.54 in Tuesday's trading session.

From a technical perspective, Verastem is ripping higher here and displaying relative strength versus the overall market weakness right off some major support at $6.75 with decent upside volume flows. This spike higher on Tuesday has now pushed this stock back above its 20-day moving average of $7.30 and right into its 50-day moving average of $7.62. This move is now quickly pushing shares of Verastem within range of triggering a big breakout trade above some key near-term overhead resistance levels. That breakout will trigger if this stock manages to clear some key near-term overhead resistance levels at its 50-day of $7.62 to $7.84 and then above more resistance at $8.03 with high volume.

Traders should now look for long-biased trades in Verastem as long as it's trending above its 20-day at $7.30 or above more support at $6.75 and then once it sustains a move or close above those breakout levels with volume that hits near or above 319,181 shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $8.38 to its 200-day at $8.62, or even $9 a share.

Nymox Pharmaceutical

  • Tuesday's Range: $2.42-$2.60
  • 52-Week Range: $0.33-$5.75
  • Tuesday's Volume: 375,000
  • Three-Month Average Volume: 1.05 million

Nymox pharmaceutical  (NYMX), a biopharmaceutical company, engages in the research and development of products for the aging population. This stock is trading up 2.4% to $2.53 in Tuesday's trading session.

From a technical perspective, Nymox Pharmaceutical is trending higher here and counter-trending versus the overall market weakness right above some near-term support at $2.35 with lighter-than-average volume. This bump higher on Tuesday is now starting to push shares of Nymox Pharmaceuticals within range of triggering a near-term breakout trade. That breakout will trigger if this stock manages to take out some near-term overhead resistance levels at $2.55 to $2.65 with high volume.

Traders should now look for long-biased trades in Nymox Pharmaceutical as long as it's trending above some near-term support levels at $2.40 to $2.35 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.05 million 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 $2.84 to $3.25.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.

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