3 Breakout Biotech Stocks Trading for Under $10

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.

Macrocure

  • Tuesday's Range: $3.08-$3.79
  • 52-Week Range: $2.60-$16.10
  • Tuesday's Volume: 311,000
  • Three-Month Average Volume: 202,360

Macrocure  (MCUR) , a biotechnology company, focuses on developing, manufacturing and commercializing novel cell therapy products for the treatment of chronic and other hard-to-heal wounds in Israel. This stock is trading up 15.6% to $3.54 in Tuesday's trading session.

From a technical perspective, Macrocure is ripping sharply higher here right off some near-term support at $3 with strong upside volume flows. This stock recently gapped-down sharply back in August from over $12 a share to under $3 a share with heavy downside volume flows. Following that move, shares of Macrocure have been spiking around wildly from $6 to $3 a share. Now shares of Macrocure are starting to rip to the upside above $3 a share, which is the recent range low, and it's beginning to move within range of triggering a near-term breakout trade. That breakout will trigger if this stock manages to take out some key near-term overhead resistance at $4 with high volume.

Traders should now look for long-biased trades in Macrocure as long as it's trending above some near-term support at $3 and then once it sustains a move or close above $4 with volume that hits near or above 202,360 shares. If that breakout begins soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at around $4.50 to $6 a share. Any high-volume move above $6 will then give this stock a chance to re-fill some of its previous gap-down-day zone that started over $12 a share.

VTV Therapeutics

  • Tuesday's Range: $8.52-$9.49
  • 52-Week Range: $7.42-$10.35
  • Tuesday's Volume: 27,000
  • Three-Month Average Volume: 97,865

VTV Therapeutics  (VTVT) , a biopharmaceutical company, engages in the discovery and development of orally administered small molecule drug candidates. This stock is trading up 4.2% to $9.09 in Tuesday's trading session.

From a technical perspective, VTV Therapeutics is spiking sharply higher here right off some near-term support at $8.50 with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $7.42 to $7.50 a share. Following that bottom, shares of VTV Therapeutics have started to spike higher and it's now quickly moving 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 take out some near-term overhead resistance levels at $9.96 to $10.35 and then above more resistance at $11 with high volume.

Traders should now look for long-biased trades in VTV Therapeutics as long as it's trending above some near-term support at $8.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 97,865 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 $14 to $15 a share.

 

Biodel

  • Tuesday's Range: $0.67-$0.72
  • 52-Week Range: $0.55-$2.05
  • Tuesday's Volume: 80,000
  • Three-Month Average Volume: 162,865

Biodel  (BIOD) , a specialty biopharmaceutical company, focuses on the development and commercialization of treatments for diabetes in the U.S. This stock is trading up 6.9% to 72 cents per share in Tuesday's trading session.

From a technical perspective, Biodel is ripping higher here and displaying relative strength versus the overall market weakness with lighter-than-average volume. This stock has been attempting to carve out a major bottoming chart pattern over the last few weeks, with shares finding some buying interest each time it has pulled back to around or under 60 cents per share. Shares of Biodel have now started to rip higher off those support levels and it's quickly moving 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 take out some near-term overhead resistance levels at 70 to 72 cents per share and then once it clears its 20-day moving average of 79 cents per share with high volume.

Traders should now look for long-biased trades in Biodel as long as it's trending above Tuesday's intraday low of 66 cents per share or above more key support around 60 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 162,865 shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at 90 cents to 94 cents, or even $1 a share.

Disclosure: 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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