Chart Analysis of HESG, QASP, and MDFI

Though the market's up firmly today, that doesn't necessarily mean all stocks are following that lead. Here's a closer look at ERHC Energy Inc. (OTC:ERHE), Health Sciences Group, Inc. (OTC:HESG), and Medefile International, Inc. (OTC:MDFI), one of which poses serious bearish threats.

There's really only one meaningful question to ask about Medefile International, Inc. (OTC:MDFI) after seeing today's breakout move - do I trust it or not? Well, I do, but with a footnote.

Medefile International shares are no stranger to big days. We've seen several accumulation days since April, and I have no reason to think this one isn't another one in that series. That's the good part about MDFI. The bad news is, if the pattern holds true, Medefile International could park right here around $0.005 and not move for weeks... up or down.

My suggestion is to wait for MDFI to at least pull back before stepping in. But, I do think Medefile International shares have some solid long-term upside potential. Just be prepared for lots of starts and stops.


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I zoomed out to a weekly chart of ERHC Energy Inc. (OTC:ERHE) to illustrate what was going on in the bigger picture. However, I recommend you take a look at a daily chart as well.

In a nutshell, ERHC Energy shares are caught between a rock and a hard place. The rock is support at $0.55, which has held the stock up since September (though it has been under attack the whole time). The hard place is the Fibonacci line at $0.59, which has become resistance after not support line ERHE in September.

I've got a feeling it's the support side that's going to crack first, sending ERHC Energy Inc. down to the next Fib line at $0.40. The sellers have been persistent - even if not numerous - for weeks now.


And finally, Health Sciences Group, Inc. (OTC:HESG) is another breakout stock I think has more upside in front of it. On the flipside, I'd wait for a pullback on this one too.

The key here isn't the big pop today. That helps get attention, but has also pulled Health Sciences Group shares into a short-term overbought situation. No, the bullish clue here is volume, which has been gradually (read 'sustainably') been increasing since mid-October for HESG.

Without any other meaningful peak to work with, I have to at least start with a target of $0.006 for Health Sciences Group shares; that's where HESG peaked at the beginning of the year. I think this s more of a play-it-by-ear trade though.... after a slight pullback cools the chart off a bit.


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