Though most traders are using today as part f a long weekend, a few opportunities are still popping up. We've found three solid ideas in ANTs Software Inc. (OTC:ANTS), Rotech Healthcare Inc. (OTC:ROHI), and Derma Sciences, Inc. (OTC:DSCI). Here's a detailed technical look at each chart.
The daily chart of
Derma Sciences, Inc. (OTC:DSCI) looks better as a daily than a weekly, so my enthusiasm as a bullish opportunity is only mild. Still, it's worth talking about.
We've seen higher highs and higher lows since December, which is the key. However, Derma Sciences has done so in such a way that we're seeing a cup-and-handle-ish shape that could be priming a breakout move. On the flipside, the weekly chart also reveals some resistance for DSCI at $1.00.... going back to 2006. That's a different era though, so I'm thinking current momentum means more than historical ceilings.
In any case, DSCI is just pushing off a low, and doing so on higher volume. I think there's enough juice to carry Derma Sciences up to $1.00, which is a decent trade.
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A lot like Derma Sciences,
ANTs Software Inc. (OTC:ANTS) has started to make higher highs and higher lows. And, it's just pushed off the lower side of a trading range. In other words, now's a good time to step in.
The daily chart of ANTs Software Inc. is bullish, but the weekly chart reveals why it's so. In short, ANTS has killed its downtrend from 2006 to 2008, consolidated between $0.28 and $0.78 for a year, and is now attacking the resistance side of the sideways range. The kick-off was a solid one.... a high-volume move from August that's starting to get a second wind.
Bottom line? ANTs Software Inc. is a speculative buy right now, and an outright buy if/when DSCI crosses above $0.78 (and stays there). This is actually one of my favorite bigger-picture ideas right now.
Rotech Healthcare Inc. (OTC:ROHI) is another cup-&-handle-ish idea, that looks a little healthier than Derma Sciences, but is pointed in the wrong direction as of today. That's ok though.
I want to show you a weekly chart of Rotech Healthcare to illustrate the bowl-shaped reversal idea, as its pretty clear with this much time shown. The problem s the 'handle' part of the pattern.... we need to see ROHI pop back above resistance at $0.52 for the bullish setup to be complete. On the other hand....
If you think these trading patterns mean less for a low volume, micro cap, sub-$1.00 stock, you're not wrong - there's not really enough of a following in these names to bet the farm on a chart pattern. Nevertheless, Rotech Healthcare has decent interest, and the cup/handle pattern does mean something. Just consider it supporting evidence if you're already bullish.
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