This Biotech's Earnings Are Sending It Toward New Highs

Thanks to a furious three-week rally, there have been plenty of stocks breaking to new highs.

In addition, some stocks with the market wind already at their back have gotten an extra push from the release of quarterly earnings reports.

The key for investors and traders now is to isolate stocks that have been propelled higher by the market and just need that extra nudge of a good earnings report to break to new highs.

One industry worth searching is biotechnology, the top-performing industry over the last six months.

Let's look at one stock on the upswing.

The Company: Jazz Pharmaceuticals

Ticker Symbol: JAZZ

Sector: Health care

Industry: Biotechnology

Jazz Pharmaceuticals identifies, develops and commercializes pharmaceutical products for various medical needs in the United States, Europe and internationally.

Related Link: The Biopharma Stock That Lost 34% Last Week

Its line includes products for the treatment of cataplexy and excessive daytime sleepiness in patients with narcolepsy, lymphoblastic leukemia, severe chronic pain and schizophrenia.

Take a look at the one-year chart of Jazz with added notations:

Jazz has had some pretty nice swings higher and lower over the last nine months.

During that time the stock has hit an area of resistance around $175 on multiple occasions. A push above that level should lead to another leg up for the stock.

In addition, the Jazz has been slowly climbing a trendline of support that could come back into play if the stock drops again.

The company on Tuesday night released its quarterly earnings report, and as stocks commonly react significantly to their report, Jazz could be setup for a break higher.

The stock closed Tuesday at $168.48; at time of publication, it was up 2.5 percent at $172.74.

Remember to use protective stops to be around for the next trade. Capital preservation is always key.