Chart Forecasts for PANL, YRCW, HTDS, and BIEL : Stocks In Focus : Small Cap Stocks and Penny Stocks For Big Returns

It looks like the market is still in limbo following today's weak open and the subsequent move into positive territory. As such, the need to focus on only the best of the best trading ideas is heightened. Among the best trading setups today are YRC Worldwide Inc. (NASDAQ:YRCW), Bioelectronics Corp. (OTC:BIEL), Universal Display Corporation (NASDAQ:PANL) , and Hard to Treat Diseases (PINK:HTDS). Here's a better view of each chart.

This isn't our first - or even our second - look at Bioelectronics Corp. (OTC:BIEL). But, even with the third look the story hasn't changed.... it's just gotten more pronounced and more bearish.

With our last look on October 12th, we had pointed out that Bioelectronics Corp. shares had made a longer-term rollover, as evidenced by a bearish MACD cross on a weekly chart. BIEL was trading at $0.085 at the time, but out worry was that a move under support at $0.078 could start a firestorm of selling.

Well, look out below, since BIEL is currently at $0.070 for the second time since then... and this time it doesn't look like it's going to be able to make a recovery attempt. The 20 day moving average line just confirmed itself as resistance, and the selling volume hasn't wavered a bit for Bioelectronics shares. Like we said last time, the $0.056 level is a checkpoint target, but that's nowhere near the full downside potential here.

Hard to Treat Diseases (PINK:HTDS) seems to keep popping up on our radar as well. To it's credit though - so far anyway - it's managed to stave off any major technical problems. The bulls are getting nervous though.

Hard to Tread Diseases shares have formed a ear-perfect wedge shape over the last several weeks. And as you can see, the lower lows this week followed by lower highs over the last three weeks from HTDS has pushed the stock about as far into the tip of the wedge that it can go.

While it hasn't happened yet, something's got to give soon just because there's no more room. We've got a feeling it's the bottom/support side of the triangle that's gong to crack first, sending Hard to Tread Diseases lower. Patience is called for in the meantime though - we just wanted to plant a seed.

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It was a good run while it lasted, but reality finally caught up with YRC Worldwide Inc. (NASDAQ:YRCW). Now it's time to pay the price for excessive gains.

As you can see on our longer-term chart of YRC Worldwide shares, the move from the July low of $1.02 to the September peak of $6.18 was nothing we've not seen from YRCW before. The stock's been trapped in that range since late 2008, bobbing up and down as speculation and worry about the end of the recession has imposed enormous volatility onto the trucking stocks.

From here, we have to assume YRC Worldwide is headed back to the lower end of this long-term trading range. It may not retreat all the way to the $1.00 mark, but it's not apt to find a floor anywhere close to where it's currently trading.

And finally, we bring up Universal Display Corporation (NASDAQ:PANL) again to follow-up on our October 8th breakout alert.

At the time PANL was trading at $12.51, and inching higher towards a ceiling at $12.88. Our hypothesis was that a break past that resistance line would inspire a much stronger move upward. As it turns out, the break happened that day. Universal Display Corporation shares closed at $13.08 that same day, and are now priced at $13.81... and still moving higher. That's a gain of 7% for those who waited for our breakout instructions to materialize, and a gain of 10% for anybody who went ahead and plowed into PANL without waiting. Ether way, we see more upside ahead.

Our only worry with PANL was that the surge would be so strong that it would be unsustainable, allowing the stock to fall back under $12.88- just as quickly as it moved above it. The key would be to build a base above $12.88. Well, as it turns out, Universal Display shares have done just that.

After peaking at $13.91 on the 14th, the bears took their shot. They were only able to send PANL to a low of $13.28 before the next bullish wave kicked in though. Since then, the stock's been headed higher again. This is a pretty solid 'buy'.

If you'd like to know of any changes in our opinion of HTDS, BIEL, PANL, and YRCW (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.

14 Comment(s) - Post a Comment

1 - 10 of 14 First « Previous Next » Last

To Art K, Xavier, and anyone else...

Comment #14 Posted by James E. Brumley on Friday, October 23, 2009 11:20 AM PDT

Hey Art K - good to see you here on the comment section. You're hitting the nail on the head.... fundamental versus technical, and charts versus results. As I'm sure all three of us already know innately, that's a debate that will never end. For me, I'd guess I'm about 50/50; half of my decisions are chart-based, and the other half are results-based. Xavier said it right when he mentioned the fundamentals need time to show up on a chart. That's something about 95% of impatient fundamantal investors need to understand but probably don't. Likewise, chart-based traders also need to understand that - eventually - the fundamentals will influence a chart. I tend to take a more chart-based approach here in the forum, but with the understanding that these are trade-oriented thoughts. For my long-term holdings, I worry more about corporate results. Finding the balance is the key to success, IMHO.

Rating : N/A

Rate It : 1 2 3 4 5

Arthur....my opinion

Comment #13 Posted by Xavier X James on Friday, October 23, 2009 11:11 AM PDT

When I trade on fundementals I look at alot of history of profits and our economy to see where I think those will land Example....BioElectronics is the reason I started looking here in the first place. Ok here it goes in short...I bought into BIEL at .003 for 10 mil shares and at the time it may have not looked like much but I thought the return on my 30K would be fairly decent and while I did not expect it to be 740K (right now) and I have flipped it a couple times, but I did expect a good gain. I started by looking at what the product was, the value of the technology and competitors. Next I looked at where it was selling at (VERIFIABLE) sales...I'm not talking "supposed sales" so I then followed with Share structure, debt and a couple other things. I found out that BIEL had applied for a patent 6 years ago for a wearable version of technology that has been proven to work and was 100% safe. I dug a little deeper and found that big name investors were in this and that BIEL had already been granted 1 FDA approval for an application treating post operation of eyelid (plastic surgery) Next I found that although the share structure was somewhat large BIEL had enough clinical trials in the works to help push the PPS higher. I found that a debt conversion would be done and the total O/S would end up somewehre in the 1.3-1.4 bil range. After that I sat down with what I thought was enough info and hard numbers to figure a PPS and I know that this is alot for a penny stock but there are truly good ones out there if you wanna spend the time!! With all the info I had I came up with a PPS...I won't say it but it was ok and I believe in my DD, this will make James proud, after all that with what I though was a good PPS in hand I pulled the charts and found some good and bad Technicals but overall what I had learned about the product, market and company was enough to say they would pull nice profits down the road. Did I think that it would all start coming about with 510(k) submissions and clinicial trials right away...No but in the midst of the Tylenol ordeal with the FDA and pain meds as a whole for that matter I knew it was going to take off after that. You see it is like Biofuel, anything that changes pace or goes against the grain if supported enough can get rolling it just takes the right advertisement and willingful. If I told you that something was 100% safe and relieved pain plus had dsta to say it helps spped up the healing process would you try it? Majority would and that is why I bought BIEL cause I believed in the product as well so a long answer to your question is No , Fundementals are things that present themselves all the time whether good or bad and I can find stocks that have great fundmentals right before Q earnings are released and flip it within 3 hours for a nice profit. Now is the time of year for that and Amazon is prime example and shopping websites are good ones right before the holiday to post big after. So what i am saying is this, When you really get down and dirty and look at everything you may find that you need to hold longer than wanting to but if you like what you saw in the first place then that may not hurt. Sorry for the rambling but I just wanted to show an example and how long or short, fundementals can help you same as technicals can. GL!

Xavier

Comment #12 Posted by Arthur M. Kang on Friday, October 23, 2009 9:28 AM PDT

Thanks for the comment. Fundamentals need to time to show up in the price of a stock...You almost have to be a long-term investor. Wouldn't you say?

Arthur

Comment #11 Posted by Xavier X James on Friday, October 23, 2009 8:52 AM PDT

In one of James' post there he stated that they are going to start putting others posts side by side to his. I fully understand the concern and questions you raise as far as Fundementals vs. Technicals and so on. I think James is trying to show the difference and give investors an all around look at stocks using knowledge from everywhere as one person does not know it all. Some trade based on Techs and some based on others but by doing this collectivley we can see the light into all sides of trading. I for one trade based on Fundementals with SOME technicals factored in but I always come up with my own PPS before even looking at what the current PPS is. By doing this I can see if I believe it is over or undervalued enough to bother. If I do the DD and believe it is a good buy I will always stand by the work I have done for myself. I think James is well ahead of other analysts by doing this because' there is so much knowledge out there to use and I think he will find out that the following will be bigger than ever if you give all the facts. I have apologized to James and will again becasue I came off like and arse and did not mean to but thought at the time it was worthy and now I see by reading all his articles that he is unbiased. Facts are things that have been proven as you know and yes technicals, trends and so on have been proven. We will all benefit from this and I think the smaller average investor will benefit even more. till then I hope every makes lots of money!!

Interesting Stuff

Comment #10 Posted by Arthur M. Kang on Thursday, October 22, 2009 6:20 PM PDT

Interesting comment thread going on here. It's kind of like a Technical Analysis vs. Fundamental Analysis vs. Level II Analysis vs. Recent Development and News Analysis debate. As traders / investors, we have a lot of tools and information at our disposal. Especially these days. Even the most modest traders probably have access to Level II. How do we, then, decipher and decode all of the differing types of information that we have? Jamey, it seems as if you use technical analysis as your overriding indicator for trading? What if a company has strong fundamentals, indicates higher guidance, put out good news, but your chart shows you that it just broke below a 20 DMA. What does that mean? Shouldn't these differing types of information be weighted and pooled to make a more cohesive and comprehensive analysis? Are there times when different types of analysis is more effective? I'm just trying to get your opinion, because like Xavier and David have shown, many times I'm faced with conflicting information patterns and analysis. How does one take into consideration all of those things and come to a definitive conclusion about going long or short. Also, as it relates, how do they incorporate a technical analysis and fundamental analysis to predict better price targets? It seems like you really like technical indicators as opposed to fundamentals. Why is that? Thanks.

Rating : 5

I like that concept

Comment #9 Posted by Xavier X James on Thursday, October 22, 2009 10:29 AM PDT

James, you are probably one of the only writers/analysts that have opened up the oppotunity to show both sides. Most only wanna show their side and get bent outta shape when someone disagrees with or questions their publishings. I applaud you for your insight and willingness to show both sides and I really think it will open eyes to all aspects of trading when showing everyones views. I look forward to seeing it. Thanks James, Xavier

To Xavier, and any others

Comment #8 Posted by James E. Brumley on Thursday, October 22, 2009 9:39 AM PDT

Thanks again for the excellent discussion.... this is the kind of intelligent debate we're trying to foster in the community. In a few weeks, you'll be able to make your case for BIEL with your very own community page - your articles will appear side by side with mine, even if totally conflicting. The aim is to be a resource to investors that shows all points of view. Stick around - that's gonna' be fun.

Not trying to insult

Comment #7 Posted by Xavier X James on Thursday, October 22, 2009 8:16 AM PDT

James, I was not trying to insult you or your intellignce but the question had to be raised about your interest when a BOLD prediction like BIEL retreating back .001 is made. Do you honestly believe that the technology and patent only warrants a .001 PPS? I follow charts as much as anyone but with that being said I would never say that .001 could be revisited. When I made reference to the long holders it was meant to say that the majority of shares out are controlled by longs and that is why there is a lack of volume compared to the past. Watching Level 2 you can clearly see that this is heavily manipulated by someone who is pinning this in a price range and walking it down to a point that they want. Yes it may have something to do with overall value to a certain extent but by watching 100 - 500 block trades go thru it is evident that they are holding this PPS for a reason. You said that there was more selling pressure than buying and I will agree with that but I will not say that it is actual volume versus false volume. I still believe that MM's are creating this look of selling pressure to as a tactic. It has happened too many times with this micros and the retreat from .12 to .09 is always going to happen after an initial pop. Although I figure the P/E ratio (some of it speculative for missing info) to be in the .11 - .115 range and I always know that because of shorts and daytraders it will trade in a range below the figured PPS. Yes I also agree with you in saying that stocks never trade at thier actual value but again when you ask why has it fallen from .12 to .07 in the last motnth I have to say that it is being manipulated heavily by someone or some group. Is BIEL a GREAT stock...No but is the technology worthy of a .001 PPS...No! Is it worthy of a .07 PPS and I say no to that. It should be trading in the .08-.085 range until FDA decision but will that happen, I think today is a telling sign of what is to come for BIEL. If I offended you then I apologize I just get frusturated when people make "technical calls" but have taken nothing else into consideration and maybe you have but there are alot of analysts about that have thier head shoved up there you know what. I have done this for many years and am not bragging when I say I have made a nice fortune off the "little ones" I am just trying to back up my theroies. Yes I will say we agree to disagree and when BIEL reverses I look forward to reading your article. again James thanks for your time!!!

To David Z

Comment #6 Posted by James E. Brumley on Thursday, October 22, 2009 6:46 AM PDT

Hi David - thanks for the comments. No argument from me.... there's no guarantee that YRCW absolutely has to sink just because it has in the past. And you're right.... catalysts may be in place that will push the stock higher instead of lower. I'm just trying to present the high-odds trade based on charts (which more often than not do repeat themselves). If anywhere along the way I implied that my calls are 100% right 100% of the time, I apologize. They're right most of the time, but not infallible. With that being said, I'll ask you the same thing I asked Xavier.... do you really think stocks trade at what they're worth? That's the core issue being debated here, it seems. I don't think they do, while other investors think they do. Only time will really tell, but it can be an interesting journey in the meantime. Thanks again for the comments.

Disagree with downgrade of YRCW

Comment #5 Posted by David Z on Thursday, October 22, 2009 3:55 AM PDT

Your analysis on YRCW is "light" and questionable with just assuming that the stock MUST go down based solely on past trading ranges (no analysis on moving averages, volume levels, option trading, etc…). You assume just because it is moving off its recent $6.00 level, then it just must go to the $2.00 or $1.00 level, just because it did in the past. The stock should be traded based on its future. Specifically, the company will be announcing their earnings and future plans with their banks on Nov 30th. What drove the stock to the $6.00 level recently was an extension of their agreement with their banks. Unless the banks want to liquidate this company in this economic environment for potentially pennies on their dollars (which does not seem likely), then this stock could move back to this $6.00 level again very quickly (no rule says it has to go to $2.00 first).

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	SmallCap Network Stock Research

Chart Forecasts for PANL, YRCW, HTDS, and BIEL

Bioelectronics Corporation, YRC Worldwide, Universal Display Corporation, and Hard to Treat Diseases are given a technical review.