ATPG, APKT, and NTWK Teetering on the Edge, for Better or Worse

One by one, the floors are being knocked out of the way by small cap software stock NetSol Technologies Inc. (NASDAQ:NTWK). The big breakdowns came earlier this month, when a straight-line support level (orange) that goes all the way back to November was snapped. The 200-day moving average line (green) fell apart shortly after that, and down NTWK went.

There's one last bastion of hope here, but it's under a serious bear attack today too. It's the 61.8% Fibonacci retracement line at $1.38; NetSol Technologies shares are currently trading at $1.42. but have been as low as $1.37. The closing level is going to be the inflection point with this one. Any close under $1.38 is apt to be the beginning of another major leg lower.  

A couple of weeks ago, small cap independent oil and gas name ATP Oil & Gas Corporation (NASDAQ:ATPG) looked like it headed for a hard crash landing. The stock had found a bearish groove, and was being guided lower by a pair of falling trend lines. How quickly things can change.

As of last week, but much more firmly today, ATPG has busted out of that bearish groove and punched through the upper side of that falling trading range. Better still, it's crossed back above all its key moving averages, yet has lots of room to run. Throw in the fact that ATP Oil & Gas is looking at a P/E of 8.8 (better than average for the sector), and it looks like the company as well as the stock are both back in business, metaphorically, and somewhat literally.

And finally, you can almost sense this on a daily chart of Acme Packet, Inc. (NASDAQ:APKT), but a weekly chart really makes it clear - this small cap stock is rolling over, feeling the weight of more than a 600% gain over the last year and a half. After making continued attacks on the support at the 50-day moving average line, a straight-line support level (orange) was cracked, and we're starting to see persistence in the lower highs and weaker lows. Indeed, the weekly chart of APKT doled out a bearish MACD cross several weeks ago; it was renewed last week.

The fundamentals aren't helping either. Though you own a stock for where it's going rather than where it's been, APKT is miles away from where it needs to be; the forward-looking P/E of 48.4 is still difficult to justify. To correct that problem, Acme Packet shares are being reeled into something a little euphoric.