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3 Biotech Stocks Under $10 Surging Higher - views
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 some of three biotech names among the stocks under $10 that are making large moves to the upside today.
Complete Genomics (GNOM) is a life sciences company that has developed and commercialized a DNA sequencing platform. This stock is trading up 9.7% to $2.58 in recent trading.
Today’s Range: $2.50-$2.75
52-Week Range: $1.57-$10.71
Three-Month Average Volume: 1.98 million
From a technical perspective, GNOM is gapping up sharply higher here right off its 50-day moving average of $2.26 with light volume. This move is coming after GNOM recently sold off from over $3.34 to $2.10 in just a few weeks.
Traders should now look for long-biased trades in GNOM as long as the stock is trending above its 50-day moving average of $2.26, and then once it clears its 200-day moving average of $3.01 with high volume. Look for a sustained move or close above $3.01 with volume that registers near or above 1.98 million shares. If we get that action soon, then look for GNOM to re-test and possibly take out its next major overhead resistance levels at $3.13 to $3.34.
SciClone Pharmaceuticals (SCLN), a specialty pharmaceutical company, has a product portfolio of therapies for oncology, infectious diseases, cardiovascular, urological, respiratory and central nervous system disorders. This stock is trading up 15.4% to $5.89 in recent trading.
Today’s Range: $5.35-$5.94
52-Week Range: $3.41-$7.58
Volume: 1.15 million
Three-Month Average Volume: 628,371
From a technical perspective, SCLN is ripping to the upside here back above its 200-day moving average of $5.46 with monster volume. This move is quickly pushing the stock within range of triggering a near-term breakout trade. That trade will hit once SCLN takes out some near-term overhead resistance at $6.04 with high volume.
Traders should now look for long-biased trades once SCLN sustains a move or close above $6.04 with volume that’s near or above 628,371 shares. If we get that action soon, then look for SCLN to re-test and possibly take out its 50-day moving average of $6.43. If that 50-day gets taken out with volume soon, then SCLN has a great chance of hitting its July high of $7.58.
Pluristem Therapeutics (PSTI) is a bio-therapeutics company engaged in the commercialization of non-personalized (allogeneic) cell therapy products for the treatment of several severe degenerative, ischemic and autoimmune disorders. This stock is trading up 12.3% at $4.00 in recent trading.
Today’s Range: $3.75-$4.20
52-Week Range: $1.98-$4.23
Volume: 2.4 million
Three-Month Average Volume: 531,278
From a technical perspective, PSTI is gapping up sharply here right off some near-term support at $3.51 with heavy volume. This move is quickly pushing PSTI within range of triggering a major breakout trade. That trade will trigger once PSTI takes out some key overhead resistance at $4.23 to $4.38 with high volume.
Traders should now look for long-biased trades in PSTI as long as this stock is trending above $3.50, and then once it clears $4.23 to $4.38 with high volume. Look for a sustained move or close above those levels with volume that’s near or above 531,278 shares. If that major breakout triggers soon, then PSTI has a chance to head well north of $5 in the near future.
To see more stocks under-$10 that are making notable moves higher today, check out the Stocks Under-$10 Moving Higher portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.