Chart Outlooks for PGH, PVHO, and SIGA
Pengrowth Energy Trust, SIGA Technologies, and Provision Holding undergo some technical trading scrutiny.
Despite the broad market's modest resilience, dipping into the small and micro cap names is proving to be more interesting and less tepid experience..... which is good news for those who know how to play these stocks. Among the most compelling setups we've come across today are Provision Holding Inc (OTC:PVHO), SIGA Technologies, Inc. (NASDAQ:SIGA), and Pengrowth Energy Trust (USA) (NYSE:PGH). Here's a detailed look at each one.
The tell-tale signs were in place by the close of business on Monday for SIGA Technologies, Inc. (NASDAQ:SIGA). Tuesday's bar was just confirmation that the break above resistance at $8.43 wouldn't get very far.
Take a look at the shape of the chart for SIGA Technologies over the prior two days. On Monday we saw a decent open, a pretty strong move higher on a lot of volume, and then a close near the low (and under the opening price). What do you think that means? It means a lot of traders were making exits, selling SIGA just as quickly as others were buying it, and selling it faster than they were buying it late in the day.
Tuesday's bar for SIGA Technologies was much less dramatic, but showed the same basic mentality... lethargic demand was more than met with enough supply to take SIGA lower. Add it all up, and the deck is stacked against the chart, particularly with the way volume spikes have been pivots of late.
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Before you throw in the towel on Pengrowth Energy Trust (USA) (NYSE:PGH) because of weak results over the last seven weeks, you should know this isn't anything we haven't seen before. More importantly, you should know PGH is still finding support at the line that carried shares here from March's low.
That support line is marked pretty clearly in our chart of Pengrowth Energy Trust below. The other line - the near term falling resistance line - only came into view in the last couple of weeks, and doesn't even really mean that much to PGH at this point; I only drew it as I think we need a clear technical event to say the rebound/breakout has started. When and if that happens, I expect Pengrowth Energy Trust to continue to make progress at the same rate we've observed so far this year. (Conversely, if the support line breaks, then PGH should be exited.... though I think that's the low-odds move.)
The question we all need to be asking right now regarding Provision Holding Inc (OTC:PVHO) is really quite simple... do I trust the breakout clues, or not? Given the strength and volume we've seen over the last two days - paired with the recovery potential - I'm inclined to favor being long here. I'm also inclined to keep PVHO on a very short leash.
Part of that boldness behind my optimism for Provision Holding shares is that the recent news has teeth, and could lead to real, tangible revenue within the foreseeable future. (What a novel concept for a press release, eh?) That should keep the buyers coming in for more than a couple of days. The other part of my optimism is fueled by the move from PVHO itself; it's a classic breakout pattern, and should inspire a lot of traders who want to jump on an unexpected shooting star. Call it a good chemistry.
I have no target in mind for Provision Holding. Just be ready to make a quick exit when the music stops.
If you'd like to know of any changes in our opinion of SIGA, PGH, and PVHO, be sure to Sign-Up for our FREE weekly Small Cap Network Newsletter TODAY! Identify quick changes in current market activity and receive timely trading ideas aimed at maximum ROI. Click Here to learn more...
The tell-tale signs were in place by the close of business on Monday for SIGA Technologies, Inc. (NASDAQ:SIGA). Tuesday's bar was just confirmation that the break above resistance at $8.43 wouldn't get very far.
Take a look at the shape of the chart for SIGA Technologies over the prior two days. On Monday we saw a decent open, a pretty strong move higher on a lot of volume, and then a close near the low (and under the opening price). What do you think that means? It means a lot of traders were making exits, selling SIGA just as quickly as others were buying it, and selling it faster than they were buying it late in the day.
Tuesday's bar for SIGA Technologies was much less dramatic, but showed the same basic mentality... lethargic demand was more than met with enough supply to take SIGA lower. Add it all up, and the deck is stacked against the chart, particularly with the way volume spikes have been pivots of late.
---------------------------------------------------------------------
Sign-up for Free to Receive Future Commentary
and Trading Alerts on PGH, SIGA, and PVHO.
---------------------------------------------------------------------
Before you throw in the towel on Pengrowth Energy Trust (USA) (NYSE:PGH) because of weak results over the last seven weeks, you should know this isn't anything we haven't seen before. More importantly, you should know PGH is still finding support at the line that carried shares here from March's low.
That support line is marked pretty clearly in our chart of Pengrowth Energy Trust below. The other line - the near term falling resistance line - only came into view in the last couple of weeks, and doesn't even really mean that much to PGH at this point; I only drew it as I think we need a clear technical event to say the rebound/breakout has started. When and if that happens, I expect Pengrowth Energy Trust to continue to make progress at the same rate we've observed so far this year. (Conversely, if the support line breaks, then PGH should be exited.... though I think that's the low-odds move.)
The question we all need to be asking right now regarding Provision Holding Inc (OTC:PVHO) is really quite simple... do I trust the breakout clues, or not? Given the strength and volume we've seen over the last two days - paired with the recovery potential - I'm inclined to favor being long here. I'm also inclined to keep PVHO on a very short leash.
Part of that boldness behind my optimism for Provision Holding shares is that the recent news has teeth, and could lead to real, tangible revenue within the foreseeable future. (What a novel concept for a press release, eh?) That should keep the buyers coming in for more than a couple of days. The other part of my optimism is fueled by the move from PVHO itself; it's a classic breakout pattern, and should inspire a lot of traders who want to jump on an unexpected shooting star. Call it a good chemistry.
I have no target in mind for Provision Holding. Just be ready to make a quick exit when the music stops.
If you'd like to know of any changes in our opinion of SIGA, PGH, and PVHO, be sure to Sign-Up for our FREE weekly Small Cap Network Newsletter TODAY! Identify quick changes in current market activity and receive timely trading ideas aimed at maximum ROI. Click Here to learn more...
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.
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