CYTK, STVI, and MMR Close to the Point of No Return, for Good or Ill

Select small caps - and one large cap - are all working on major, trade-worthy moves.

May 16, 2011 7:39:40 AM PDT | 491 View(s) | No Comment(s) - Post a Comment Rating

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StockHQ:

MMR
$16.86 $0.00 0.00%
CYTK
$0.71 -$0.02 -2.77%
STVI
$0.43 $0.00 0.00%

If you think Mcmoran Exploration Co (NYSE:MMR) is just lucky today because it's up while the rest of the market is down, you may want to take a closer look at the nearby chart - there's a great deal of technical support that's responsible for the recent recovery. More important, that strong floor is likely to continue playing a bullish role for MMR, keeping it in the hunt for a breakout (which has been teasing us since late March).

The recent bounce has two prompts. The first one is the 200-day line (green) at $16.10, and the other is straight line support (blue) that catches almost all the lows going back to September. The latter one has been persistent, which is why it shouldn't be dismissed now. The long-term goal here us ultimately a break above the upper side of the wedge around $19.20. That idea is fairly clear on the nearby daily chart, but this longer-term weekly chart really puts it all into perspective.

It's been a long time in the works for Cytokinetics, Inc. (NASDAQ:CYTK), but it was worth the wait. What's that? The rebound move. After sinking for over a year, the last two months have been net bullish, and have almost gotten this small cap stock - a biotech - over some major technical humps.

The scope of this reversal is somewhat clear on the nearby weekly chart, where we now have a positive MACD cross, a rising accumulation/distribution line, and CYTK shares themselves are finally back above the 50-day and 20-day moving average line (and still chugging). It's this larger and more detailed daily chart of Cytokinetics, however, that really shows you the key details.... like the fact that the 20-day average line is back above the 50-day, and that the 20/50-day line crossover has just happened in the last few days on higher volume. We can also see the resistance at $1.56 is close to being toppled. All good things.

Finally, small cap stock Snap Interactive Inc. (OTC:STVI) may look just a little volatile and range-bound on the surface. If you take a closer look at some of the key technicals though, you'll find the bears have actually been slowly but surely chipping away here. In fact, the dam may have been broken last week - it just needs one more crack to widen the hole past the point of repair.

Enough cliches for you? The nearby chart will add the details to the concept. Last week, STVI fell under the 10-day moving average line (grey) for the first time in a long time, after finding support there in mid-April. The string of lower highs since February doesn't allow for much hope of a bounce. The killer for Snap Interactive, however, is that it's pennies away from simultaneously breaking under the lower edge of a wedge shape (blue) as well as under a near-term support level (orange), both around $2.53. If we see a trade around $2.50 or lower, look out below.

Bryan Murphy is a paid contributor of the SmallCap Network. Bryan Murphy's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.