Chart Review: PWRM, CYCC, CPYE

The market's wishy-washy again today, forcing traders to pick and choose carefully since a market-wide tide probably isn't going to carry many stocks very far. Among the best of the best we came across this morning are Cyclacel Pharmaceuticals Inc. (NASDAQ:CYCC), Conspiracy Entertainment Holdings Inc. (OTC:CPYE), and Power3 Medical Products, Inc. (OTC:PWRM).

I'm a little hesitant to even put a stock like Conspiracy Entertainment Holdings Inc. (OTC:CPYE) through the trading wringer. The float is small, and volume is light. It's not the ideal stock to analyze on a technical basis. On the other hand, a pattern does appear to be emerging.

If the name rings a bell, it may be because I took a stance on Conspiracy Entertainment Holdings back on October 15th. At the time my view was bearish based on the massive outside day reversal we were watching unfold. And, the bearishness paid off - CPYE fell from $0.105 to a low of $0.06 in about a week. I was counting on a move to $0.05, but it's still a 30% to 40% gain if you played it well.

Now, following the modest push higher on modestly better volume, I'm thinking Conspiracy Entertainment Holdings are brewing a rebound. A rebound to where? That's the reason I'm revisiting CPYE today... I see a bullish trading range forming. They're the blue lines on the chart below.

Like I said, with trading as thin as it is for Conspiracy Entertainment, take it all with a grain of salt. I'm willing to bet other traders are eying the same pattern though, and may well end up creating a self-fulfilling prophecy.

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We actually looked at Cyclacel Pharmaceuticals Inc. (NASDAQ:CYCC) back on the 14th. I'm only bringing it up now to let you know that nothing's really changed. It's an important view to reiterate though.

As before, Cyclacel Pharmaceuticals is still range-bound. Per our last conversation, the stock is stuck between $0.80 and $1.24, though we also acknowledged last time that the volume inflow hinted that the latest surge may indeed be the one that breaks CYCC out of its rut. Though the stock fell back towards $0.88 (the other support line) in the meantime, the rebound over the last seven days has me wondering.


The M.O. is the same as before... none of this means anything until/unless Cyclacel Pharmaceuticals can actually crack the ceiling at $1.24. If it does though, I suspect a major breakout move will develop. I'll keep it on my watchlist, and you should do the same.

A little bad news - albeit it obvious - regarding Power3 Medical Products, Inc. (OTC:PWRM)... it's not likely to recover from the early-October breakdown anytime soon. In fact, it's starting to look like it's accelerating lower.

The chart below says it all - lower lows, lower highs. Moreover, PWRM doesn't even seem interested in looking back at this point. Though volume has been light behind the pullback from Power3 Medical, it's still been consistent.

As for a downside target, I can see PWRM making its way all the way back to August's low around $0.012. Too far away? I thought so too, at first glance. But hey - Power3 Medical Products are already under the second (the 61.8%) Fibonacci retracement line as of today, so what's another 30% worth of decline?

If you'd like to know of any changes in our opinion of CPYE, PWRM, and CYCC  (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.