Wednesday, October 15, 2014

3 Biotech Stocks Under $10 in Breakout Territory

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

Must Read: Warren Buffett's Top 10 Dividend Stocks

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.

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Regado Biosciences

Regado Biosciences (RGDO), a biopharmaceutical company, focuses on the discovery and development of antithrombotic drug systems for acute and sub-acute cardiovascular and other indications. This stock closed up 8.8% to $1.11 in Tuesday's trading session.

Tuesday's Range: $0.97-$1.11

52-Week Range: $0.96-$14.10

Tuesday's Volume: 597,000

Three-Month Average Volume: 768,826

From a technical perspective, RGDO ripped sharply higher here right above its 52-week low of 96 cents per share with lighter-than-average volume. This move pushed shares of RGDO into breakout territory, since the stock cleared some near-term overhead resistance at $1.09. Shares of RGDO are now starting to trend within range of triggering a much bigger breakout trade. That trade will hit if RGDO manages to take out some more key overhead resistance levels at $1.13 to $1.16 and then once it clears $1.20 to $1.25 with high volume.

Traders should now look for long-biased trades in RGDO as long as it's trending above its 52-week low of 96 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 768,826 shares. If that breakout kicks off soon, then RGDO will set up to re-test or possibly take out its next major overhead resistance level at its gap-down-day high from August of $1.44. Any high-volume move above $1.44 will then give RGDO a chance to re-fill some of its gap-down-day zone that started just above $2.80.

Must Read: 5 Breakout Trades Beating the Market Slump

Rock Creek Pharmaceuticals

Rock Creek Pharmaceuticals (RCPI), a pharmaceutical company, focuses on the research, development and commercialization of compounds and formulations targeting inflammatory and neurological disorders. This stock closed up 2.3% to 32 cents per share in Tuesday's trading session.

Tuesday's Range: $0.30-$0.35

52-Week Range: $0.24-$2.59

Tuesday's Volume: 1.33 million

Three-Month Average Volume: 886,477

From a technical perspective, RCPI trended modestly higher here back above its 50-day moving average of 31 cents per share with above-average volume. This stock recently formed a major bottoming chart pattern, since shares found buying interest at 24 cents, 23 cents and 25 cents per share. Since forming that bottom, shares of RCPI have started to spike higher and move back above its 50-day moving average. That move is now quickly pushing shares of RCPI within range of triggering a big breakout trade. That trade will hit if RCPI manages to take out Tuesday's intraday high of 35 cents per share and then once it clears more key overhead resistance levels at 37 cents to 42 cents per share with high volume.

Traders should now look for long-biased trades in RCPI as long as it's trending above 29 cents per share or above 25 cents to 23 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 886,477 shares. If that breakout develops soon, then RCPI will set up to re-test or possibly take out its next major overhead resistance levels at 53 cents per share to its 200-day moving average of 63 cents per share.

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Actinium Pharmaceuticals

Actinium Pharmaceuticals (ATNM), a biotechnology company, develops drugs for the treatment of cancer. This stock closed up 6.6% to $6.86 in Tuesday's trading session.

Tuesday's Range: $6.39-$7.03

52-Week Range: $4.30-$15.00

Tuesday's Volume: 108,000

Three-Month Average Volume: 77,691

From a technical perspective, ATNM ripped sharply higher here right off its 50-day moving average of $6.32 with above-average volume. This move briefly pushed shares of ATNM into breakout territory, since the stock flirted or took out some key near-term overhead resistance levels at $6.69 to $6.88. Shares of ATNM tagged an intraday high of $7.03, before it closed just below that level at $6.86. Market players should now look for a continuation move to the upside in the short-term if ATNM manages to clear Tuesday's intraday high of $7.03 with strong upside volume flows.

Traders should now look for long-biased trades in ATNM as long as it's trending above its 50-day at $6.32 and then once it sustains a move or close above $7.03 with volume that hits near or above 77,691 shares. If that move gets underway soon, then ATNM will set up to re-test or possibly take out its next major overhead resistance levels at $7.50 to $7.77, or even its 200-day at $8.05. Any high-volume move above $8.05 will then give ATNM a chance to tag $9 to $10.

Must Read: 5 Rocket Stocks to Buy for a Shaky Market

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., 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.


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