5 Stocks Under $10 Set to Soar
Aeterna Zentaris
Another under-$10 specialty biopharmaceutical player that's starting to trend within range of triggering a near-term breakout trade is Aeterna Zentaris (AEZS - Get Report), which engages in developing and commercializing novel treatments in oncology, endocrinology, and women's health. This stock has been smacked lower by the sellers over the last three months, with shares off by 42%.
If you take a look at the chart for Aeterna Zentaris, you'll notice that this stock has been consolidating a bit over the last few weeks, with shares moving between 26 cents on the downside and 33 cents on the upside. Shares of Aeterna Zentaris have started to spike higher right above some near-term support levels at 27 to 26 cents per share. That spike is quickly pushing this stock within range of triggering a near-term breakout trade above some key overhead resistance levels.
Market players should now look for long-biased trades in this stock if it manages to break out above some key near-term overhead resistance levels at 30 to 31 cents per share and then above 32 to 33 cents per share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action 3.12 million shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at 40 cents to its 50-day moving average of 46 cents, or even 50 to 55 cents per share.
Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at 27 to 26 cents per share. One can also buy shares of Aeterna Zentaris off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
