The market's back in the black for today so far, but that doesn't mean every stock is headed in the same direction. Among our best finds today are Elixir Gaming Technologies, Inc. (AMEX:EGT), Cardium Therapeutics Inc. (AMEX:CXM), and Mesa Air Group, Inc. (NASDAQ:MESA), two of the three of which pose bullish opportunities. The other one poses a bearish chart.
I was hoping for the sake of anybody who owned it that
Mesa Air Group, Inc. (NASDAQ:MESA) would find support at a key Fibonacci retracement line, since it didn't find any at a long-term support near the end of last month. The fact that the Fib line also failed as support has opened the door to even further downside.
The level in question is the $0.149 mark, which Mesa Air Group shares not only fell under this week, but also hit as resistance on Tuesday. There's a bastion of hope left around $0.125 for MESA, but that's under attack too - I don't expect it to hold up.
The next stop? Don't laugh, but I feel Mesa Air Group shares may hit $0.03 - next to nothing - again before it's all said and done. There's really no other support between here and there.
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I'll warn you now that
Elixir Gaming Technologies, Inc. (AMEX:EGT) is likely to be as volatile in the near future as it has been in the recent past. If you can stomach it though, the upside should be worth the headache.
On the chart of Elixir Gaming Technologies below, you'll see a near-term triangle, and a long-term support line. I only plotted the wedge shape as a remote possibility; I ultimately think EGT is going to fall under the lower side of the triangle and revisit the long-term support line, currently at $0.24.
At that point, I expect Elixir Gaming Technologies shares to find support as they have since March, and eventually pop with the kind of thrust we've seen three times now since November of last year. That could push EGT as high as the $0.45 area. Timing your entry is the key though.
It was only a few weeks ago
I was bearish on
Cardium Therapeutics Inc. (AMEX:CXM), before the fall from $1.04 to a low of $0.65 (hope you were able to benefit from the call). Now, however, I think I'm growing bullish again.
Take a look at the chart. Cardium Therapeutics shares have pushed off that low, and made gains for four straight days now. Though volume has been nothing to write home about, the volume on the way down wasn't that great for CXM either. Rounded (bowl shaped) reversals like this tend to work out better than most V-shaped reversals, which is another reason CXM should have the wind at its back.
This is strictly a short-term trading stance on Cardium Therapeutics - not a long term call.
If you'd like to know of any changes in our opinion of MESA, EGT, or CXM (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.
