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3 Pharma Stocks Leaping on Unusual Volume - 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 several stocks under $10 that are making large moves to the upside today.
Biocryst Pharmaceuticals (BCRX)
This is a biotechnology company that designs, optimizes and develops novel drugs that block key enzymes involved in cancer, viral infections and autoimmune diseases. This stock is trading up 4.3% to $1.68 in recent trading.
Today’s Range: $1.62-$1.79
52-Week Range: $1.08-$5.95
Three-Month Average Volume: 645,034
From a technical perspective, BCRX is starting to flirt with its 50-day moving average of $1.69 here with decent volume. This stock has been uptrending for the last month, with shares moving higher from its low of $1.33 to its recent high of $1.79. During that move, shares of BCRX have been consistently making higher lows and higher highs, which is bullish technical price action. That move is quickly pushing BCRX within range of triggering a major breakout trade. That trade will hit if BCRX manages to clear some near-term overhead resistance levels at its 50-day of $1.69 and then more overhead resistance at $1.75 with high volume.
Traders should now look for long-biased trades in BCRX as long as it’s trending above some near-term support at $1.57 to $1.50, and then once it sustains a move or close above those breakout levels with volume that hits near or above 645,034 shares. If that breakout triggers soon, then BCRX will set up to re-test or possibly take out its next major overhead resistance at $2.88.
Tekmira Pharmaceuticals (TKMR)
This company is engaged in a biopharmaceutical business focused on advancing novel RNA interference therapeutics and providing its lipid nanoparticle delivery technology to pharmaceutical partners. This stock is trading up 8.8% to $5.40 in recent trading.
Today’s Range: $5.00-$5.44
52-Week Range: $1.77-$6.78
Three-Month Average Volume: 61,738
From a technical perspective, TKMR is bouncing strongly here right off its 50-day moving average of $4.95 with above-average volume. This stock is quickly moving within range of triggering a near-term breakout trade. That trade will hit once TKMR takes out some near-term overhead resistance levels at $5.35 to $5.78 with high volume. At last check, TKMR have hit an intraday high of $5.45 and volume is just starting to surpass its three-month average action of 61,738 shares.
Traders should now look for long-biased trades in TKMR as long as it’s trending above its 50-day at $4.95, and then once it sustains a move or close above those breakout levels with volume that hits near or above 61,738 shares. If that breakout hits soon, then TKMR will set up to re-test or possibly take out its next major overhead resistance levels at $6 to $6.78.
This is a clinical-stage biopharmaceutical company focused primarily on the development of therapeutic products for the treatment of cancer. This stock is trading up 3% to $2.34 in recent trading.
Today’s Range: $2.62-$2.42
52-Week Range: $1.71-$9.23
Volume: 1.57 million
Three-Month Average Volume: 1.41 million
From a technical perspective, ONTY is trending modestly higher here with above-average volume. This stock recently gapped down big last December from around $4.50 to $1.71 with massive downside volume. Following that gap, the stock hit $1.80 and then started to rebound and move higher back above $2 a share. That rebound has now pushed ONTY into breakout territory back above its gap down day high of $2.19. This move is also coming off extremely oversold territory, since its relative strength index (RSI) reading was well below 20. Oversold can always get more oversold, but it’s also an area where a stock can experience a powerful bounce higher. Since ONTY is moving back above its gap down day high, it looks like that bounce is under way.
Traders should now look for long-biased trades in ONTY as long as it’s trending above or near its gap down day high of $2.19 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 1.41 million shares as bullish. If ONTY can maintain that trend, then this stock will set up to re-fill some of its previous gap down zone. Some possible upside targets are $3 to $3.50.
To see more stocks 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 technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.