Listed in: Best Biotech Stocks, Best Penny Stocks, Top Biotech Stocks, Best Biotech Stocks, Penny Stocks Breaking Out, Biotech Stocks Breaking Out
Today we are featuring twelve biotech stocks that have been breaking-out in recent weeks. What’s important to notice is that each of this is above its 50 day and 200 day moving average. One of the first things I do when I am checking for the potential of a stock is to look at is it improving or not improving. A great way to find a stock that has good things going for it is to screen for those that are above both of these moving averages. I am purposely using FREE TOOLS in this example rather than the premium tools you find on certain member sites. When I screen for moving averages I look at five day, thirty day and fifty day and 200 day. I do not necessarily want to see that the stock is above all of those, but the shorter term moving averages does tell you if something is wrong with the stock.
Moving average are only part of the equation. We then look to fundamentals.
My goal is to find stocks that others have undervalued. My goal is to find those that are true turn-around candidates. Stocks that have been down but have recovered some, but have a significant upside. I want a stock that either has profitability or a damn good reason why it is a value now. With biotechs it is often a new drug or a new technology that is in testing. If everything goes right, the stock moves up. If there is a set back, the stock dives. If all hope is lost, it goes way, way down. I love biotechs AFTER recent financials are out. I love biotechs between the periods when testing of a new drug is anticipated to be reported on. I do not like holding a higher risk biotech through the release of financial data or when an update is likely on a particular phase of testing. The smaller biotechs usually end up with some bad news. I have done this enough and when I hold such a stock I always put notes to myself about when the next phase of testing is likely and I look for an exit in advance of that. I use limit orders to get me modest profits when they occur. I always make sure there is sufficient volume to cover any sale I have to do. Typically in very tightly traded smallcaps you never want to buy more than about the daily average volume. These stocks in this list are not lightly traded, so they are not as great a risk in that regard.
Up next I am going to show you the full list. I am going to put these in simple spreadsheet that shows you how they are in relation to their moving average. After that we are going to take these one by one. Finally I will give you two strategies to play biotechs.