Two bullish stocks out of three isn't bad, especially considering the market's in the red today. I was fully expecting to find a lot of bearish setups among the sub-$1.00 group I usually sort through, but today's dig was different. Among Spanish Broadcasting System Inc (NASDAQ:SBSA), Apollo Gold Corporation (AMEX:AGT), and Altair Nanotechnologies, Inc. (NASDAQ:ALTI), two of the three charts actually held some upside potential.
I've yet to figure out what the deal was with yesterday's deep low from
Spanish Broadcasting System Inc (NASDAQ:SBSA). I do know that it wasn't a tock error, that it occurred at the open, and that a ton of yesterday's volume was made at or near that price. I did not find any insider or institutional trades though. (Let me know below if you've got the scoop.)
Regardless, Spanish Broadcasting System are in an uptrend I like.... it's the ascension side of a long-term bowl shape that started back in early 2008. [You should know this rounded chart reversal pattern is one of my favorites.] Better still, the pullback SBSA made over the prior four weeks was just enough to cool it off before it became too overbought.
The buying volume for Spanish Broadcasting System not been as great as I'd like just yet for this swing, but it's still young. I think it will materialize. I don't have a target in mind for SBSA, but that rising support line should make for a good stop.
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Altair Nanotechnologies, Inc. (NASDAQ:ALTI) is the one bearish setup of the three charts in focus today.
I suppose this was inevitable. Altair Nanotechnologies failed to make higher highs with September's surge, but has made a string of lower highs ever since. So, what you see on the chart of ALTI below is a stock that's been unable to retain its gains over the last several months. What you don't see prior to the beginning of the year is a stock that's been unable to hang into its gains for years now.
I'll acknowledge Altair Nanotechnologies shares have a chance at finding support at $0.88. Given the whole scenario though, I'm looking for ALTI to eventually fall under it.... and well beyond.
And finally, I'm unable to resist my instincts to avoid highly obvious trades; I like
Apollo Gold Corporation (AMEX:AGT).I'm a contrarian, which pays off far more often than not. And I, like you, have been hearing nothing but gold, gold, gold from every angle. When the whole world is in agreement about something like they are about gold now, the party's usually over. This time though, I think the world happens to be right - albeit it for the wrong reason - which is good news for Apollo Gold Corporation.
From a technical perspective, AGT has been riding a bullish support line higher since November of last year. From a fundamental perspective, since gold is a hedge against inflation and/or a bear market, and we've yet to actually see any inflation yet, I feel once inflation does kick in, gold can indeed keep moving to record prices. And yes, Apollo Gold should move right along with it.
From this point, my only concern for AGT would be potential Fibonacci resistance around $0.52 (the 61.8% retracement line). Given that Apollo Gold share were above it just last month though, it's not a biggie.
If you'd like to know of any changes in our opinion of AGT, ALTI, or SBSA (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.
