Not All Is As It Seems - Reviews of TXIC, ZOLT, and NEXM

For  those of you who've been reading for at least three weeks or so, you'll the bearish call I made on NexMed, Inc. (NASDAQ:NEXM) has been in and out of the red ever since the big move from $0.40 to $0.50 on April 27th. As mentioned a few days later though, I still had doubts about the apparent strength from NEXM. Well.... 

Though I do so cautiously, I think the selloff potential from NexMed, Inc. that got my attention in the first place has materialized again. That former-support line at $0.43 has become a resistance line, as has this small cap stocks' 20-day moving average at $0.44. I don't see it bouncing up out of trouble this time.

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There's some good and bad news if you're a fan or owner of Tongxin International Ltd (NASDAQ:TXIC). The good news is, this small cap is close to revisiting the support line that traces lows from late January and late October. So, the bleeding should stop soon (around $5.32).

The bad news is, TXIC is still in a bearish trading range; even if it bounces up and off that support line, there's a parallel falling resistance line that's apt to cap any rebound effort pretty quickly. In fact, this is the resistance line that's sent Tongxin International tumbling to the support line all three times it's made this leg lower. So, don't get too bullish at the first sign of strength.

And finally, though I'd normally side against the masses who lurk the stock trading message boards, this time, I think their collective bullish opinion on Zoltek Companies, Inc. (NASDAQ:ZOLT) is - conditionally - the right one.

In simplest terms, ZOLT has been in a consolidation mode (and in a wedge shape) since last May. Slowly but surely over that period though, this small cap stock has chipped away at the resistance lines of that range, and is now within striking distance of a breakout move. If Zoltek Companies can pop above $10.81, that should be the last major resistance line to contend with. Poof - breakout city.

If you'd like to receive further updates and any changes in our opinions ZOLT, TXIC, and NEXM, be sure to sign-up for the SCN Newsletter today! It's FREE.