Incyte Corp. (NASDAQ: INCY) is our next pick from the single-digit sect, and it's not a play for the squeamish. The company is part of the frequently volatile biotechnology industry, and focuses its efforts on drugs that inhibit specific enzymes thought to cause cancer, diabetes, and other serious maladies. After abandoning its DFC medication, designed to help patients with HIV, the company has focused its efforts on a number of other treatments in the pipeline. A successful clinical trial could result in impressive gains in the stock, while another disappointment could send the shares unraveling.

But for now, the stock looks like a nice potential play for an aggressive trader. The stock has been in rally mode since early August, aside from a slight pullback that petered out a few weeks ago. From early August through mid-November, INCY shares had increased more than 80% and toppled several layers of technical resistance.

Currently, the stock is consolidating some of its recent gains as it tests its 10-week moving average. This trendline coincides with chart support at the $8.00 mark, representing the equity's April 27 peak. This level served as resistance seven months ago but may reverse roles and act as support this time around, especially as its presence is bolstered by the 10-week trendline.