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5 Biotech Stocks Rising 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 biotech and pharma 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 5% to $1.46 in recent trading.
Today's Range: $1.33-$1.63
52-Week Range: $1.08-$5.95
Three-Month Average Volume: 400,533
From a technical perspective, BCRX is bouncing notably higher here right around some near-term support at $1.25 with above-average volume. This move has briefly pushed BCRX into breakout territory, since the stock has challenged some near-term overhead resistance at $1.58. That move has also started to push BCRX into its gap down zone from a few weeks ago that started near $2.50. At last check, BCRX has hit an intraday high of $1.63 and volume is well above its three-month average action of 400,533 shares.
Traders should now look for long-biased trades in BCRX as long as it's trending above today's low of $1.33, and then once it sustains a move or close above some near-term overhead resistance at $1.58 to $1.63 with volume that hits near or above 400,533 shares. If we get that action, then BCRX will set up to re-fill some of that previous gap back towards $2.50.
Optimer Pharmaceuticals (OPTR)
This is a biopharmaceutical company focused on discovering, developing and commercializing anti-infective products. This stock is trading up 6.3% to $9.90 in recent trading.
Today's Range: $9.39-$10.03
52-Week Range: $8.79-$16.49
Three-Month Average Volume: 557,752
From a technical perspective, OPTR is bouncing higher here off oversold levels with decent volume. This stock has been downtrending badly for the past three months, with shares plunging from a high of $16.49 to a recent low of $8.79. During that downtrend, shares of OPTR have been consistently making lower highs and lower lows, which is bearish technical price action. That said, the stock has now started to bounce off extremely oversold levels, since its relative strength index (RSI) reading was below 30 the past few weeks. That bounce is now pushing OPTR within range of triggering a near-term breakout trade. That trade will hit once OPTR manages to take out some near-term overhead resistance at $10.15 with high volume.
Traders should now look for long-biased trades in OPTR as long as it's trending above today's low of $9.37, and then once it sustains a move or close above $10.15 with volume that hits near or above 557,752 shares. If that breakout triggers soon, then OPTR will set up to bounce back towards its 50-day moving average of $11.73.
AEterna Zentaris (AEZS)
This is a global biopharmaceutical company, which is focused on endocrine therapy and oncology with expertise in drug discovery, development and commercialization, mainly targeting the North American and European markets. This stock is trading up 8% to $2.15 in recent trading.
Today's Range: $1.90-$2.20
52-Week Range: $1.75-$13.02
Three-Month Average Volume: 570,360
From a technical perspective, AEZS is trending higher here with above-average volume. This bounce today is coming after shares of AEZS recently downtrended badly from a high of $5.62 to a recent low of $1.75. During that downtrend, shares of AEZS were consistently making lower highs and lower lows, which is bearish technical price action. That said, this bounce is now pushing AEZS within range of triggering a near-term breakout trade. That trade will hit once AEZS manages to clear some near-term overhead resistance levels at $2.37 to $2.50 with high volume.
Traders should now look for long-biased trades in AEZS as long as it's trending above today's low of $1.90, and then once it sustains a move or close above those breakout levels with volume that hits near or above 5700,360 shares. If that breakout triggers soon, then AEZS will set up to re-fill some of its previous gap down zone from October that started above $3. Any high-volume move above its 50-day at $2.98 will then put $3.55 to $4 into focus for AEZS.
This is a biopharmaceutical company developing targeted therapies for the treatment of cancer and inflammatory diseases. It uses its proprietary technology to create novel small molecule drug conjugates, or SMDCs, and companion imaging diagnose. This stock is trading up 9.9% to $8.52 in recent trading.
Today's Range: $7.75-$8.51
52-Week Range: $3.02-$11.11
Three-Month Average Volume: 226,471
Shares of ECYT are soaring today after Summer Street started coverage on the stock with a buy rating and an $18 price target.
From a technical perspective, ECYT is exploding higher here right near its 200-day moving average of $7.39 with above-average volume. This move has also pushed ECYT into breakout territory, since the stock has moved above some near-term overhead resistance at $8.24. This move is coming after ECYT recently downtrended from a high of $10.97 to its recent low of $7.50.
Traders should now look for long-biased trades in ECYT as long as it's trending above its 200-day at $7.39, and then once it sustains a move or close above $8.24 with volume that hits near or above 226,471 shares. If ECYT can maintain that trend, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $9.50 to $10. Any high-volume move above those levels will then put $10.68 to $10.97 into focus for ECYT.
Dynavax Technologies (DVAX)
This is a clinical-stage biopharmaceutical company, discovers and develops novel products to prevent and treat infectious diseases, asthma and inflammatory and autoimmune diseases. This stock is trading up 8.7% to $2.90 in recent trading.
Today's Range: $2.60-$2.91
52-Week Range: $2.22-$5.34
Volume: 7.61 million
Three-Month Average Volume: 3.14 million
From a technical perspective, DVAX is bouncing strongly to the upside here with monster volume. This stock recently gapped down huge, from around $5 to its recent low of $2.21 with heavy selling volume. That move pushed DVAX into oversold territory, since its relative strength index (RSI) reading dipped below 30. Shares of DVAX are now moving into the gap since the stock has recently cleared its gap down day high just above $2.50 with volume.
Traders should now look for long-biased trades in DVAX as long as it's trending above its gap down day high near $2.50 with strong upside volume flows. I would consider any upside volume day that registers near or above 3.14 million shares as bullish. If DVAX can maintain that trend, then this stock will set up to re-fill its gap down zone back towards its 200-day at $4.25.
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.