Stocks are again in the red today, but if you dig deep enough into the micro cap segment of the market, you'll find as many bullish opportunities as bearish. Among the most interesting ideas we've run across today are FiberTower Corp. (NASDAQ:FTWR), Optical Systems, Inc. (OTC:OPSY), and Michelex Corporation (OTC:MLXO). Here's a better look at each chart.
I don't know when I last saw a chart like the current one of
Michelex Corporation (OTC:MLXO). I do know that I'm quite comfortable about the longevity of its bullishness though.
The big tip-off here is the growing bullish volume; Michelex Corporation has attracted more buyers n the last three weeks than it had over the prior three months. Yet, MLXO - strangely - did not run away to ridiculous highs. It simply looks like it's starting to accelerate (i.e. there's some meat left on the bone).
I don't have a target in mind for Michelex Corporation shares; just play it by ear. This is one of my favorite picks recently.
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FiberTower Corp. (NASDAQ:FTWR) is staging a breakout above a key resistance line, plain and simple.
The nearby chart is pretty self-explanatory..... after getting smashed in October, FiberTower Corp. continued to be driven lower by a falling resistance line. It was a downtrend on borrowed time though, as the selling volume for FTWR lightened up the entire time.
Yesterday, everything changed for FiberTower on the resistance front as well as the volume front; FTWR was shaken out of its rut. If the stock can close above yesterday's high of $0.617 with even-stronger volume within the next couple of days, a rebound move should be clinched.
Finally, a little bad news for anybody who still owns
Optical Systems, Inc. (OTC:OPSY)... the party's over - time to go home (take your profits).
To some of you this will be an obvious point about Optical Systems shares. To others, the size and shape of today's reversal and loss is alarmingly bearish.
It's called an outside day, where the range today completely engulfs yesterday's bar. The fact that OPSY started well above yesterday's high and has since proceeded to move under yesterday's low is a strong clue that the bulk of the market was just waiting for a great exit opportunity. How do we know this? Because volume for Optical Systems is through the roof today... meaning traders are stepping out in greater numbers than they were piling in just a few days ago. That's not apt to be just a one-day scenario, since volume spikes have also been pivot points of late.
If I had to venture a guess, I'd say Optical Systems won't find a landing spot until it's back near $0.20, where the stock's found support before.
If you'd like to know of any changes in our opinion of MLXO, FTWR, or OPSY (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.
