Chart Review: LBAS, UQM, CEPH

Stocks ended the day little changed on Tuesday - perhaps a hint that Monday's strength is going to be unwound, or perhaps a hint that the market just needed a break. Either way, we've got a handful of stocks that seem to be setting up a move no matter what the market end up doing next. Those names are UQM Technologies, Inc. (AMEX:UQM), Cephalon, Inc. (NASDAQ:CEPH), and Location Based Technologies, Inc. (OTC:LBAS).

If you're getting giddy about the recent run from Cephalon, Inc. (NASDAQ:CEPH), I suggest you reel in your enthusiasm a hair... there's still one big hurdle to be crossed.

In simplest terms, Cephalon shares are trapped between a range of $53.17 and $60.00, with the upper limit being tested - but not passed - today for the fourth time in six months today. The fact that CEPH peeled back from its high before coming to a close today doesn't suggest the bulls are too interested in pressing the issue.

Above $60.00, I think Cephalon is a strong technical buy. That's a big wall between here and there though.


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I think a minor support line at $4.31 had a little to do with it. But, mostly, I think UQM Technologies Inc. (AMEX:UQM) were in an uptrend anyway, and simply got over-extended in September.

Over the last two weeks, UQM Technologies had been hitting something of a resistance line at $4.88. The 5.8% gain today punched through tat ceiling, and the volume that came in two tells me there's more of the same from UQM in the near future. 

As for a target, I suppose we have to first guess that UQM Technologies will hit turbulence again at October's high around $6.00. I think the potential from UQM is actually far greater though. Let's play the exit by ear.

And finally, Location Based Technologies, Inc. (OTC:LBAS) caught my interest not because I think it has oodles of upside potential (which it might), but because it's got (relatively) little downside.

Look at the chart of Location Based Technologies closely... you'll see a support line at $0.60 that extends back to March. Not that the trip from the current price of $0.90 from LBAS back to $0.60 would be a mere blip, but given that this stock was trading at $10.00 just a little over a year ago poses a curious risk/reward ratio.

In any case, though we've seen Location Based Technologies do nothing with the same kind of high-volume breakout we saw today, one of them will eventually have to take hold. What's different now is a much more optimistic environment for LBAS... the kind that can actually sustain rallies.

I'd recommend adding some DD to whatever chart analysis of Location Based Technologies I offered (which admittedly isn't much).


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