Replies to post #7 on Proteon Therapeutics, Inc. (PRTO)

[fredman]

These 5 Stocks Under $10 Could Make You a Lot of Money

Here's a technical look at how to trade several under-$10 stocks triggering breakout trades



Another under-$10 biotechnology player that's starting to move within range of triggering a big breakout trade is Proteon Therapeutics (PRTO) , which focuses on the development of pharmaceuticals to address the needs of patients with renal and vascular diseases. This stock has been destroyed by the sellers over the last six months, with shares collapsing by 75.7%.

If you take a glance at the chart for Proteon Therapeutics, you'll notice that this stock recently gapped-down sharply lower from around $10 a share to under $2.50 a share with monster downside volume flows. Following that move, shares of Proteon Therapeutics went on to print a new 52-week low at $1.75 a share within a few weeks. This stock has now started to rebound off that $1.75 low and it's beginning to trend within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Proteon Therapeutics if it manages to break out above some near-term overhead resistance levels at $2.14 to $2.25 a share with volume that registers near or above its three-month average action of 208,676 shares. If that breakout develops soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $2.60 to its gap-down-day high from last December at $3.10 a share. Any high-volume move above $3.10 will then give this stock a chance to re-fill some of its gap-down-day zone that started near $10 a share.

Traders can look to buy this stock off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $1.90 a share, or near its new 52-week low of $1.75 a share. One can also buy shares of Proteon Therapeutics off strength once it starts to move above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Source:
http://www.thestreet.com/story/13943826/2/these-5-stocks-under-10-could-make-you-a-lot-of-money.html