$GBIM 1.02 One under-$10 biopharmaceutical player that's starting to trend within range of triggering a near-term breakout trade is GlobeImmune (GBIM) , which focuses on developing therapeutic products for cancer and infectious diseases based on proprietary Tarmogen platform. This stock has been dumped hard by the sellers over the last six months, with shares off large by 49%.
If you take a glance at the chart for GlobeImmune, you'll notice that this stock has been downtrending badly over the last two months, with shares sliding sharply lower from its high of $2.54 a share to its intraday low on Wednesday of 93 cents per share. During that downtrend, this stock has been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of GlobeImmune reversed higher off that 93 cent low on Wednesday with strong upside volume flows. This high-volume reversal is now quickly pushing this stock within range of triggering a near-term breakout trade.
Back by Popular Demand…“Confessions of a Street Addict” Get a FREE signed copy of Jim Cramer’s national best-seller when you gain access to his multi-million dollar charitable trust portfolio! Click here to see Jim’s holdings and get your FREE gift.
Traders should now look for long-biased trades in GlobeImmune if it manages to break out above some near-term overhead resistance levels at $1.16 to $1.20 a share and then above more resistance at $1.25 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 193,830 shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $1.70 to its 20-day moving average of $1.77, or even its 50-day moving average of $1.89 to $2.15 a share.
Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right below Wednesday's intraday low of 93 cents per share. One can also buy shares of GlobeImmune 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.
Have a Great Weekend!
:)
Pennybuster
