Sep 10, 2010 8:47 AM PDT
The line in the sand for Smart Balance, Inc. (NASDAQ:SMBL) is $5.80. That's the Mason-Dixon line that if SMBL falls under, things will have officially gone from bad to worse. The 'bad' is the string of strangely-reliable lower highs we've seen since early May, though to its credit, this small cap has pushed off support around $5.90 three times now. The bears keep coming though, and the bulls may decide to yield if they see they're stock reach the $5.80 mark. Be careful.
By the way, the $5.80/$5.90 area isn't a new development for Smart Balance shares - we've seen support as well as resistance several times at that mark over the last couple of years. It's not clear why that's a make-or-break point; it's just clear that it is.
The goods news is, there's support for SMBL at $5.00.
-------------------------------------------------------------------------------
Sign-Up for Free to Receive Our Complete Opinions, Detailed
Analysis, and Timely Trading Alerts SMBL, SNSS, and YMI.
-------------------------------------------------------------------------------
Well, it looks like we can go ahead and mark the $0.72 area as a support line for Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS). This small cap found support there last week, much like it did back in mid-March. As a result, it's not officially range-bound..... which is a good thing, as we can now reasonably play the bounce up to....
...resistance around $1.15. The top edge of the trading zone is a lot fuzzier than the bottom side for SNSS, but it's around there. Just look for a key reversal bar from Sunesis Pharmaceuticals when/if that area is reached. Alternatively, just look for the one-day-wonder rally that just can't be sustained.
And finally, U-Store-It Trust (NYSE:YSI) is not ready to renew its rally that carried it from the mid-$6 area to the $9.00 area. I know a lot of you were looking to tap that uptrend from YSI, but there's a bigger trend in place here - a long-term bullish trading channel.
That channel, in fact, has caught both major bottoms we've seen from U-Store-It Trust since October of last year; the upper edge of the channel has caught the three major highs we've seen from this small cap since then, including the one from about four weeks ago. Assuming we see YMI span that entire range again - as it has been - U-Store-It won't be primed for a bounce until it falls all the way back to the $7.00 area.
If you'd like to receive our complete opinions, detailed analysis and timely trading alerts on SNSS, SMBL, and YSI, be sure to Sign-Up for the SCN Newsletter today! It's FREE.
