Investors aren't too committed in either direction today following the holiday weekend. But, there are still trading opportunities for those who look hard enough. Among the more interesting ones we've come across this mornings are Hard to Treat Diseases, Inc. (PINK: HTDS), China MediaExpress Holdings Inc (AMEX:TMI), and BizAuctions Inc. (OTC:BZCN). Here's a closer look at each one.
The party was fun while it lasted, but
China MediaExpress Holdings Inc (AMEX:TMI) is starting to look burdened by its recent gains. It may be time to make exits and wait for a healthy re-entry point.
From October's low of $7.35 to the peak of $13.65 a week ago, China MediaExpress Holdings gained 85%. The last leg of the move, however, lacked follow-through as well as volume. Moreover, we've seen two or three distribution days from TMI over the past week and a half. Simply put, we're out of gas.
As for a potential landing and reversal point, China MediaExpress Holdings has a key Fibonacci retracement line at $11.31, and then another at $9.83. Both are decent possibilities, but I'd bet on the latter for TMI - the upper one just doesn't bleed off enough of the excessive gain to reset the stock.
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Hard to Treat Diseases, Inc. (PINK:HTDS) has been bouncing around in a sideways zone since August. However, with the lower side of the range being approached, once again the chart's at a major inflection point.
The upper edge of the range is at $0.021, while the lower is at $0.007. Our chart of Hard to Treat Diseases, Inc. below plots both lines in blue, and it's pretty clear how those levels got our attention.
So, the M.O. here is pretty simple. If HTDS falls under $0.007 on decent volume, I'm expecting a wave of profit taking. That would be a shorting opportunity if your broker can get it and will let you short it. If Hard to Treat Diseases shares instead finds support at $0.007, it could make for a nice bullish swing trade back up to the $0.021 area. Keep it on your radar.
If you find yourself suddenly interested in
BizAuctions Inc. (OTC:BZCN) after big gains over the last week, I can't say I blame you. However, I'd also caution you against digging in too deep just yet - I think we can get a better price.
In short, the move from $0.001 to $0.0048 will definitely draw plenty of attention to BizAuctions Inc. The question is, can BZCN hang into its current value while the next round of buying is being brewed up? I don't think so.
With not one but two bullish gaps left behind -
coupled with am oversized runup on fading volume - I'd be very surprised if BizAuctions shares don't retreat significantly.... say to the $0.002/$0.003 area. At that point, one of the gaps will be closed, and all the regretters will get a second chance to step in at a relatively attractive level. Just wait for BZCN to make its first strong uptick around that price range before getting in.
If you'd like to know of any changes in our opinion of HTDS, BZCN, and TMI, 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...
