Chart Analysis: KERX, MDAS, PEIX
Pacific Ethanol, MedAssets, and Keryx Biopharmaceuticals are given a technical trading once-over.
Last week's bullishness faded slightly this morning. And, considering how overbought stocks got last week, more of the same weakness could be in store for this week. As such, traders should focus on only the best setups until things get sorted out. Among the best-looking names right now are Keryx Biopharmaceuticals (NASDAQ:KERX), MedAssets, Inc. (NASDAQ:MDAS), and Pacific Ethanol Inc. (NASDAQ:PEIX). Here's a closer look at each.
For anyone who's hopeful that MedAssets, Inc. (NASDAQ:MDAS) will pull out of this funk and recover, you're not being realistic. For anybody who's bearish on MDAS and want to see the slide continue, good news... the bearish weight is piling up.
There are only two big clues I want to focus on here. The first is the obvious directional shift for MDAS. The stock was riding a bullish support line for the better part of last year, but as of November, MedAssets shares were being guided lower by a falling resistance line. Both are marked in blue; the resistance line was re-verified last week.
The other big clue that MedAssets, Inc. is the behavior around the 50 day moving average line (thick, purple). It too was support throughout most of 2009, but has turned into resistance as of late December.
As long as either or both of those levels are intact as resistance, this downtrend should persist.
It looks like the Pacific Ethanol Inc. (NASDAQ:PEIX) bulls managed to hold their ground after all. In fact, PEIX may be gearing up for an advance.
In early February after PEIX fell out of a wedge formation - bearishly - it looked like the stock was headed lower. The final line in the sand was the 38.2% Fibonacci retracement line at $1.84, which as it turns out ended up acting as a floor for Pacific Ethanol Inc. Moreover, it's starting to act like a springboard.
Though the bullish volume has been light during the rebound, it's still been quite bullish on a net basis. And, we've also seen Pacific Ethanol make slightly higher highs and lows since then. They're very subtle clues, but clues all the same... and could be good for a move at least back up to January's peak of $2.75.
Keryx Biopharmaceuticals (NASDAQ:KERX) is the other bearish setup on my radar this morning, and it's not even a new idea.... I actually turned bearish on KERX back on February 4th. It's just that - in the meantime - the bears' grip has tightened.
The paradigm shift for KERX came on the 4th, after the stock fell under the long-standing support line (thick, blue) that had been so bullish up until then. The nails in the Keryx Biopharmaceuticals coffin were driven when the stock fell under its 100 day average (grey), and found resistance at the 20 day moving average line (blue) just today.
I think the final blow for Keryx Biopharmaceuticals will be a move back under the 100 day average at $2.47. With the current price at $2.49, that could happen at any time (and I think it's only a matter of time).
For anyone who's hopeful that MedAssets, Inc. (NASDAQ:MDAS) will pull out of this funk and recover, you're not being realistic. For anybody who's bearish on MDAS and want to see the slide continue, good news... the bearish weight is piling up.
There are only two big clues I want to focus on here. The first is the obvious directional shift for MDAS. The stock was riding a bullish support line for the better part of last year, but as of November, MedAssets shares were being guided lower by a falling resistance line. Both are marked in blue; the resistance line was re-verified last week.
The other big clue that MedAssets, Inc. is the behavior around the 50 day moving average line (thick, purple). It too was support throughout most of 2009, but has turned into resistance as of late December.
As long as either or both of those levels are intact as resistance, this downtrend should persist.
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In early February after PEIX fell out of a wedge formation - bearishly - it looked like the stock was headed lower. The final line in the sand was the 38.2% Fibonacci retracement line at $1.84, which as it turns out ended up acting as a floor for Pacific Ethanol Inc. Moreover, it's starting to act like a springboard.
Though the bullish volume has been light during the rebound, it's still been quite bullish on a net basis. And, we've also seen Pacific Ethanol make slightly higher highs and lows since then. They're very subtle clues, but clues all the same... and could be good for a move at least back up to January's peak of $2.75.
Keryx Biopharmaceuticals (NASDAQ:KERX) is the other bearish setup on my radar this morning, and it's not even a new idea.... I actually turned bearish on KERX back on February 4th. It's just that - in the meantime - the bears' grip has tightened.
The paradigm shift for KERX came on the 4th, after the stock fell under the long-standing support line (thick, blue) that had been so bullish up until then. The nails in the Keryx Biopharmaceuticals coffin were driven when the stock fell under its 100 day average (grey), and found resistance at the 20 day moving average line (blue) just today.
I think the final blow for Keryx Biopharmaceuticals will be a move back under the 100 day average at $2.47. With the current price at $2.49, that could happen at any time (and I think it's only a matter of time).
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James E. Brumley is a paid contributor of the SmallCap Network. James E. Brumley's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.
