The market may be cooling off a little today, but a handful of charts are just starting to heat up. As such, they may be trade-worthy. Take a look at Uranerz Energy Corp. (URZ), Nephros, Inc. (OTC:NEPH), Conspiracy Entertainment Holdings Inc. (OTC:CPYE), and Novavax, Inc. (NVAX), as each may be an opportunity.
Conspiracy Entertainment Holdings Inc. (CPYE) has been heavily promoted over the last several days - an effort that has ultimately paid off, taking the stock from $0.05 to today's peak of $0.16. As with all promotions though, when the pumping end, so does the buying... sending the stock into a freefall.
And, today's the day it looks like that's happening for Conspiracy Entertainment Holdings. The volume has been huge - a frequent sign of a pivot - and the pullback from the open as been very decisive. It looks as if somebody was simply waiting to dump their CPYE shares right when the market was the strongest (surprise, surprise).
With the strong reversal bar in place, there's really no telling how far Conspiracy Entertainment could tumble. There's support around $0.05, so let's just start with that as a target.
We almost didn't bother looking at
Novavax, Inc. (NVAX), assuming the modest rally over the last week or so was just the normal post-selloff drift higher. As it turns out, the boost may be something a little healthier than that.
The low of $3.37 Novavax made two weeks ago was a perfect 61.8% Fibonacci retracement of the April/September rally. More than that, NVAX found support there again last week, confirming the earlier push off that line. To see the stock move higher again, and to do so on higher volume, strongly suggests that Fib line was indeed a reversal point.
From here, the 38.2% retracement line at $5.08 is a checkpoint target for Novavax, meaning we don't necessarily want to make exits there - we just want to watch it closely to determine as quickly as possible if the rally will halt there.
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Depending on which support line you're watching,
Uranerz Energy Corp. (URZ) has either already broken down, or is darn close to it. No matter what, current owners or potential short traders need to be aware of what's going on.
There are two support lines on our chart of Uranerz Energy. One traces the highest number of 'low' nodes, while the other trades the line for all the true lows made over the last six months. The former has been broken, while the latter has not.
As for which to interpret, we don't think URZ is going to fall apart quite yet in either case. The stock's big move lower left behind a gap that will ideally be closed before Uranerz Energy follows through on this downtrend. Once that gap is filled and once URZ falls back under either or both of those support lines, then it will be time to sell it, or short it. So for now, it's only going on the watchlist.
And finally,
Nephros, Inc. (NEPH) has been jump-started again.
Normally we'd simply steer clear of this kind of chart, particularly for a bulletin board stock. Too often these blips are one-day wonders. With Nephros though, we're seeing follow-through today that's as strong as Wednesday's surge. Better still, NEPH has been rebounding on strong, rising volume. In so doing, Nephros has broken above a short-term resistance line.
From here, it looks like Nephros could head back up to August's peak around $2.60.
If you'd like to know of any changes in our opinion of URZ, NVAX, CPYE, or NEPH (or if we officially recommend them as trades), be
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