NTWK, QPSA, and CPST Are All 'On the Verge', for Better or Worse

Slowly but surely, the bears keep taking the wind out of the NetSol Technologies Inc. (NASDAQ:NTWK) sails. The latest bout has materialized over the last two days, though the setup for the let-down actually began two weeks ago.... when this software company's stock fell under a key support line as well as the all-important 200-day moving average line.

That move under key indicator lines boded bearishly for NTWK, but then just three days later the chart offered a glimmer of hope when the 61.8% Fibonacci retracement line at $1.38 hints. By Tuesday it had become a springboard, pushing the stock back up to a high of $1.61 on Wednesday. The 200-day line - and now the 20-day moving average line - were waiting for it though, and have rekindled this bigger-picture downtrend. Some traders say the downtrend is well intact, and a move under the Fib line at $1.38 will accelerate the selloff.

Shares of electric turbine manufacturer Capstone Turbine Corporation (NASDAQ:CPST) are forming the same basic shape, though from a much higher elevation. This stock is still trading 43% above its 200-day moving average line following a 200% rally over the past eight months. The weight of those gains is starting to take a measurable toll though.

Since peaking in late March, CPST shares have made a string of lower highs, and have also fallen under key short-term moving average lines. Thought traders have yet to see a low under the apparent horizontal support at $1.68, the floor at $1.76 has been broken.  Given the degree of separation between Capstone Turbine Corporation shares and its long-term moving average, a move under that key support level could spark a rapid selloff.  

Despite the overt appearance of charts of CPST and NTWK though, there are brewing bullish possibilities Quepasa Corporation (AMEX:QPSA) is one of them. Though not over a key technical hurdle yet, this social networking and gaming (for the Latin America market) stock has displayed a persistent degree of buying interest, and remained in the hunt for a major breakout effort.

The key here with the chart of QPSA is the converging wedge (framed in blue) that's been in place since February. The stock has found support at the lower edge of the triangle for a great deal of this period, though it's found resistance at the upper edge as well.  In just the last week and a half though, Quepasa Corporation shares have started to draw more buying volume, and started to find support at more bullish technical levels (like the 50-day line, purple). The $8.30-$8.70 zone is the real test; anything above that would be considered a bullish prompt for many traders.