Aug 27, 2010 10:04 AM PDT
Though the recent rebound from American Scientific Resources Inc. (PINK:ASFX) hasn't necessarily been all that impressive, you have to keep one thing in mind... it's managed to make gains against a nasty bearish tide. That should count for something. I don't like the way American Scientific Resources shares have been closing on the lower of its bras over the last three days - that doesn't exactly indicate traders have a 'take it home' mentality. On the other hand, ASFX is still making gains.
Not based on today alone, but rather based on the reversal of the downtrend and effort to make higher highs on stronger volume, I have to get a little bullish on American Scientific Resources. If you wanted to play it safe you could wait for ASFX to crack the short-term ceiling at $0.026.
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Before you pull the plug on China Architectural Engineering, Inc. (NASDAQ:CAEI) and decide to dump your holdings, you should at least know there's a smidgen of hope.
As you can see on the chart below, the $1.33 mark has been a support area for China Architectural Engineering going back to April. I don't think the floor will hold the stock up, but there's always a chance. And, there's not a lot of point in bailing out now if you've already ridden CAEI to this point.
That being said, I ran across China Architectural Engineering as a potential bearish trade, if that tells you anything. Personally (and assuming your broker can and will make it happen), I'd look to short CAEI if it slides to $1.32 or lower. I was going to go ahead and suggest shorting it now, but than caught a glimpse of that horizontal support line.
On Tuesday I actually posted a pseudo-bullish outlook for Conspiracy Entertainment Holdings Inc. (OTC:CPYE). Since then I've been neither right nor wrong, as shares have basically been flat. Some interesting items have popped up on the chart though.Specifically, Conspiracy Entertainment Holdings has developed some important support and resistance levels this week, and I don't mean the expanding (but bullish) channel lines I described on Tuesday. I'm talking about a horizontal range for CPYE, between $0.06 and $0. 08. That new range is plotted with red lines.
I still contend Conspiracy Entertainment Holdings shares have more upside potential than anything else, even if it strictly a trading (non-valuation) based call. It's just that now, CPYE has some other barriers to deal with.
If you'd like to know of any changes in our opinion of ASFX, CPYE, or CAEI (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.
