Although trading activity is already starting to dry up as we head into the long weekend, that doesn't mean some sweet opportunities aren't taking shape. Take a look at Generex Biotechnology Corporation (OTC:GNBT), Gevo, Inc. (NASDAQ:GEVO), and Bio Matrix Scientific Group Inc. (PINK:BMSN), for instance. Though for three (mostly) different reasons, all three are positioning for some solid upside.
I actually took a look at Gevo, Inc. back on the 7th, though I first started to discuss it back on the 2nd. It was the same story both times though - GEVO was inching its way toward a breakout move. As of today, however, I think it's pretty much there.
The nearby chart tells the tale and explains my rationale. My bullish stance from the 2nd corresponds with the cross above the 50-day moving average line. My "right stock, wrong time" commentary from the 7th stemmed from the doji bar made the day the 100-day moving average line... a production that was right too, in that GEVO peeled back quite a bit. But, that peel-back might have been just what the doctor ordered to act as a reset and renewal of the uptrend, which made today's move possible - a pop above the 100-day moving average line. Gevo, Inc. has also made its biggest advances on the strongest volume, so this effort has the backing it needs.
Speaking of stocks that are getting their second wind, take a look at Bio Matrix Scientific Group Inc. Shares pushed off the converged 20-day and 50-day moving average lines in early January before testing the 200-day line in the middle of the month. Although BMSN ultimately pulled back from that long-term indicator rather than hurdle it, we've seen the broad bullish undertow further solidify.
One of those key clues is volume... not so much a ton of bullish volume (though there is rising bullish volume), but the lack of bearish volume on key bearish days like the 15th - the first day after the 200-day line was hit - and today. BMSN will still need to regroup and rekindle the effort into something a little more tangible, but the ingredients are here... Bio Matrix Scientific Group just needs to cook them in the right way. Any close above $0.0025 would be a great start.
Finally, to give credit where it's due, Bryan Murphy was the first one to uncover the budding breakout from Generex Biotechnology Corporation, talking about it on January 14th. But, I liked the setup and the subsequent action from GNBT so much in the meantime that I had to poach his idea.
Anyway, per Bryan's last look, GNBT had snapped a downtrend via the push above the 20-day and 50-day moving average lines (which also broke a key straight-line resistance level). Although the stock had fallen back under the 50-day line at the time Bryan took his look, he still liked the way the bulls were fighting... and so do I. In fact, as of yesterday, Generex Biotechnology have made their way above the 50-day moving average line again; it's that second effort that really seals the deal. Yeah, GNBT shares are in the red today, but on a Friday heading into a three-day weekend, I'm not sweating it. The bullish damage is done.