The market is again hesitating in the shadow of a tepid march into new-high territory. Yet, for some stocks like Diamond Foods, Inc. (NASDAQ:DMND), Bio Matrix Scientific Group Inc. (PINK:BMSN), and PositiveID Corporation (OTC:PSID) the party is just on the verge of getting started. Here's a look at what it's going to take to get them going, if they're not over their humps yet.
To give credit where it's due, James Brumley was the first one to spot the budding breakout from Bio Matrix Scientific Group Inc. He talked about it back on January 31st when BMSN was trading around $0.0038 and had just crossed above the 200-day moving average line. As of the last look, the stock's at $0.0071... nearly double the price from where he first suggested it.
The only reason BMSN is worth another look today is to reiterating his initial point - the bulls have gotten on their proverbial horses here. Although we can pretty much count on more of the same back and forth moving ahead, at least on a net basis that back and forth is bullish for Bio Matrix Scientific Group shares. You just have to wait to buy on the dips.
If the name PositiveID Corporation rings a bell, it may be because the SmallCap Network featured it as a compelling small cap stock idea back in early 2012. The company's got a couple of things going on, like a bio-warfare and pandemic toxin (air) sensor, and a device that measures and logs - wirelessly - a diabetic's blood sugar level. PSID was even working on a device that could measure glucose levels without the need for a pin prick and blood drop. All those things are still on the table (even further down the table) now, but that's not the focal point today.
No, what's worth a look this Monday morning is the way PSID has been consolidating between $0.015 and $0.02. In fact, it's getting squeezed into a wedge, and is close to the tip of it now. We've seen a handful of strong accumulation (buying volume) during this consolidation phase too. The next step is a break above the upper edge of the falling resistance line, though at this point a move above the 200-day moving average line could be worth the wait. It's only at $0.026 right now, but a move above it could prompt a buying avalanche.
Finally, a name that's been brewing for a while, but is now close enough to at least put on your watchlist - Diamond Foods, Inc.
The DMND story is a long, convoluted, and tragic one... which is why I'm not going to tell it. Suffice it to say that this company - a strong brand name and an operational structure with a lot of potential - was and is ripe for a turnaround. And, that turnaround may well be materializing right now, if the chart is any clue of the market's changing mood on this name.
Simply put, after suffering a disastrous plunge in November, Diamond Foods shares have been getting squeezed into a wedge that's about as narrow as it can be now; something' got to give soon. Though the bullish volume has been tepid the deeper into the tip of the wedge DMND travels, there's a subtle bullish clue coming into view now - the 20-day and 50-day moving average lines are acting as support. Admittedly, there's a little bit of "can't get any worse" lending a bullish hand too. Any move above that upper resistance line of the triangle shape should be taken at face value.