Chart Outlooks for ELTP, CCTC, IMGG, and INSM
Clean Coal Technologies, Insmed Incorporated, Elite Pharmaceuticals, and Imaging3 are given a technical once-over.
The market managed to finish the day in the black on Wednesday, but if you take a step you'll see how strained the bulls are - it's not likely to last. In the meantime, a few small and micro cap names from both sides of the fence look like they've got some trading potential. Here's a closer look at Imaging3, Inc. (OTC:IMGG), Elite Pharmaceuticals, Inc. (OTC:ELTP), and Clean Coal Technologies (PINK:CCTC).
The question for Clean Coal Technologies (PINK:CCTC) isn't one of whether or not this is a breakout move - it IS a breakout move. The question is, how far can CCTC run before hitting a major headwind? I've got a reasonable answer... a couple, actually.
In the absence of any other meaningful support or resistance lines, the application of Fibonacci retracement lines suggests the first checkpoint for CCTC is the $0.56 level. The next one is at $0.88, and is probably the more important of the two. However, I'd be wrong to not acknowledge that Clean Coal Technologies might turn the support at $1.06 (found in December and January) may end up being a ceiling when attacked from a different direction.
Several great options, huh? I know... too many to really worry about any single one. The bigger point is the same - Clean Coal Technologies is making a huge move an explosive volume today, and I expect it to get some bullish traction over the next several days.
I know with today's big gain that Imaging3, Inc. (OTC:IMGG) looks like a solid buy... perhaps even more so when considering the upward move from last week. As enticing as it feels though, I still see too many problems for IMGG.
The biggest burden is still that nagging Fib retracement line at $0.77. It was a problem in late December, not to mention a handful of times in September and October. So, to see it pop up again now (today's high from Imaging3 is $0.79, and the rally was stopped cold) just underscores the problem. Never mind the fact that the stock's overbought.
The killer, however, is the lack of volume behind the Imaging3, Inc. rally over the last four days - it's even weaker than the last attempt's from late January. Until some fresh buyers step up, all these rallies are apt to be undone at this ceiling.
Before you start congratulating yourself if you're an owner of Insmed Incorporated (NASDAQ:INSM), let me inject a dose of harsh reality. While INSM seems to have finally shrugged off whatever was holding it back, the peak at $1.12 is alarmingly aligned with the peak from last July, when the stock first started to work on its recovery.
I actually went bullish on this stock way back in November, and renewed that bullish optimism for INSM in January after it moved above an important ceiling. And, I'm still bullish on Insmed Incorporated. However, I also expect to see this chart retreat at least once from this known resistance level, regroup, and then march past it at a more reasonable pace.
In other words, I don't think you missed the 'reasonable price' boat. In fact, if you waited you have the choice of waiting for a breakout above $1.12, or waiting for a temporary pullback to the $0.90's again.
As far as a target goes, I'm still thinking Insmed Inc. is largely being driven by the June gap. So, let's just keep thinking aggressively for the time being and shoot for $2.39. The biggest risk here isn't the big target, but that INSM will shot into overbought territory again (like it is now), and not be able to recover from a retraction.
The wait with Elite Pharmaceuticals, Inc. (OTC:ELTP) has just gotten excruciating. I first started following this stock in mid-December, as it was being squeezed by a converging triangle.... eventually, ELTP would be forced out of it., and poof - instant trade. Here we are two months later, and the stock's still stuck in the wedge's confines.
Today, however, we at least saw some movement from ELTP that suggest the waiting game is coming to a close. With a volatile swing from a high of $0.115 to a low of $0.091, Elite Pharmaceuticals shares touched both sides of the range it's trapped in.
On the surface that may seem meaningless, and from a net progress perspective it is. Subtly though, this tells me that interest and activity is perking up again for Elite Pharmaceuticals, Inc. Though we still have no clear direction, today's move should accelerate the stock towards giving us one. Keep it close.
The question for Clean Coal Technologies (PINK:CCTC) isn't one of whether or not this is a breakout move - it IS a breakout move. The question is, how far can CCTC run before hitting a major headwind? I've got a reasonable answer... a couple, actually.
In the absence of any other meaningful support or resistance lines, the application of Fibonacci retracement lines suggests the first checkpoint for CCTC is the $0.56 level. The next one is at $0.88, and is probably the more important of the two. However, I'd be wrong to not acknowledge that Clean Coal Technologies might turn the support at $1.06 (found in December and January) may end up being a ceiling when attacked from a different direction.
Several great options, huh? I know... too many to really worry about any single one. The bigger point is the same - Clean Coal Technologies is making a huge move an explosive volume today, and I expect it to get some bullish traction over the next several days.
I know with today's big gain that Imaging3, Inc. (OTC:IMGG) looks like a solid buy... perhaps even more so when considering the upward move from last week. As enticing as it feels though, I still see too many problems for IMGG.
The biggest burden is still that nagging Fib retracement line at $0.77. It was a problem in late December, not to mention a handful of times in September and October. So, to see it pop up again now (today's high from Imaging3 is $0.79, and the rally was stopped cold) just underscores the problem. Never mind the fact that the stock's overbought.
The killer, however, is the lack of volume behind the Imaging3, Inc. rally over the last four days - it's even weaker than the last attempt's from late January. Until some fresh buyers step up, all these rallies are apt to be undone at this ceiling.
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I actually went bullish on this stock way back in November, and renewed that bullish optimism for INSM in January after it moved above an important ceiling. And, I'm still bullish on Insmed Incorporated. However, I also expect to see this chart retreat at least once from this known resistance level, regroup, and then march past it at a more reasonable pace.
In other words, I don't think you missed the 'reasonable price' boat. In fact, if you waited you have the choice of waiting for a breakout above $1.12, or waiting for a temporary pullback to the $0.90's again.
As far as a target goes, I'm still thinking Insmed Inc. is largely being driven by the June gap. So, let's just keep thinking aggressively for the time being and shoot for $2.39. The biggest risk here isn't the big target, but that INSM will shot into overbought territory again (like it is now), and not be able to recover from a retraction.
The wait with Elite Pharmaceuticals, Inc. (OTC:ELTP) has just gotten excruciating. I first started following this stock in mid-December, as it was being squeezed by a converging triangle.... eventually, ELTP would be forced out of it., and poof - instant trade. Here we are two months later, and the stock's still stuck in the wedge's confines.
Today, however, we at least saw some movement from ELTP that suggest the waiting game is coming to a close. With a volatile swing from a high of $0.115 to a low of $0.091, Elite Pharmaceuticals shares touched both sides of the range it's trapped in.
On the surface that may seem meaningless, and from a net progress perspective it is. Subtly though, this tells me that interest and activity is perking up again for Elite Pharmaceuticals, Inc. Though we still have no clear direction, today's move should accelerate the stock towards giving us one. Keep it close.
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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.
