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- 5 Buy Signals From the Consumer Sector
- 3 Stocks Rising on Unusual Volume
4 Biotech Stocks Under $10 Moving 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 several biotech stocks under $10 that are making large moves to the upside today.
Peregrine Pharmaceuticals (PPHM) is a clinical-stage biopharmaceutical company that develops and manufactures monoclonal antibodies for the treatment of cancer and viral infections. This stock is trading up 22.2% to 89 cents per share in recent trading.
Today’s Range: $0.76-$0.94
52-Week Range: $0.39-$2.26
Volume: 2.2 million
Three-Month Average Volume: 875,371
Shares of PPHM are skyrocketing today in front of its quarterly earnings report, which is due out on July 16 after the market close.
From a technical perspective, PPHM is soaring back above its 200-day moving average of 79 cents with heavy volume, and it’s broken out above some near-term overhead resistance at 78 cents. If this momentum buying can continue, then PPHM could manage to trigger more near-term breakout moves. Those breakouts will hit once PPHM takes out $1.01 to $1.14 with high volume.
Traders should now look for long-biased trades in PPHM as long as it’s trending above its 200-day at 79 cents, and near its daily highs with strong upside volume flows. I would consider any upside volume day that registers near or above 875,371 shares as bullish. If we continue to see that action, then PPHM could take out $1.01 to $1.14 prior to its earnings report. On the flipside, I would avoid this stock if it moves back below 79 cents with heavy volume.
Sequenom (SQNM) is a molecular diagnostic testing and genetics analysis company. This stock is trading up 1% at $3.76 in recent trading.
Today’s Range: $3.64-$3.83
52-Week Range: $3.46-$7.80
Volume: 1.1 million
Three-Month Average Volume: 3.9 million
From a technical perspective, SQNM is moving modestly higher here right near some recent support at $3.64 with light volume. Since the start of June, shares of SQNM have started to make higher lows, which could be indicating the stock is bottoming.
Traders should now look for long-biased trades if that near-term low of $3.64 can hold. Also, to confirm that SQNM is gearing up for a run higher, look for some better volume to start coming into this stock. I would recommend looking for upside volume that’s near or above 3,892,630 shares. If that $3.64 level holds, then SQNM could be gearing up for a re-test and possibly breakout above its 50-day moving average at $4.24 and then its 200-day at $4.36.
Adventrx Pharmaceuticals (ANX), a biopharmaceutical company, focuses on developing proprietary product candidates. This stock is trading up 4.6% at 60 cents per share in recent trading.
Today’s Range: $0.58-$0.63
52-Week Range: $0.45-$3.91
Volume: 1.1 million
Three-Month Average Volume: 286,871
Shares of ANX are moving sharply higher today after Vista Partners updated its coverage on the stock, and maintains its 12-month price target of $3.50 a share.
From a technical perspective, ANX is jumping higher here with monster volume, and this stock has started to flirt with breakout territory above some near-term overhead resistance at 61 cents.
Traders should now look for long-biased trades if ANX can manage to take out its 200-day moving average of 67 cents with high volume. Look for a sustained move or close above 67 cents with volume that’s near or above 286,871 shares. If we get that action soon, a much bigger breakout will trigger once ANX takes out more past resistance at 69 to 72 cents with volume. Any high-volume move over those levels will set this stock up to trend back towards $1 to $1.16 in the near future. It’s very possible ANX could hit $1.40 if it triggers high-volume moves over 72 cents and then $1.16.
Orexigen Therapeutics (OREX) is a biopharmaceutical company focused on the development of pharmaceutical product candidates for the treatment of obesity. This stock is trading up 3.9% at $6.49 in recent trading.
Today’s Range: $6.06-$6.54
52-week Range: $1.22-$6.58
Volume: 3.1 million
Three-Month Average Volume: 2.5 million
From a technical perspective, OREX is trending strong here with shares moving within range of tagging a brand new 52-week high on above average volume. This move is also pushing OREX close to triggering a major breakout trade. That trade will hit once OREX takes out some near-term overheated resistance at $6.55 to $6.58 with high-volume.
Traders should now look for long-biased trades once OREX sustains a move or close above $6.55 to $6.58 with volume that’s near or above 2.5 million shares. If we get that action soon, then this stock could be setting up to fill more of its gap-down from early 2011 that started near $10. This stock has made a huge run in the last few weeks, so keep this trade tight if you play the breakout, and only stay with it holds the breakout.
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.