Technical Forecasts: IMGG, SNWT, KERX

Despite the fact that stocks are deep in the red today - the second day in a row, and the fourth in the last six - I've actually stumbled across a couple of bullish ideas (though neither are necessarily rock-solid). And yes, I found a bearish one too. Here's a technical look at San West, Inc. (OTC:SNWT), Imaging3, Inc. (OTC:IMGG), and Keryx Biopharmaceuticals (NASDAQ:KERX).... the tickers worth keeping an eye on for a while.

It's not quite done brewing up yet, but it looks like San West, Inc. (OTC:SNWT) is making an sincere breakout effort. The only thing that's missing right now is buying volume - a tad more could give SNWT just the nudge it needs to get the stock off life support.

The key to it all is the resistance at $0.09, where SNWT is currently priced. I zoomed way out on this chart to show you how and where the $0.09 level had been a ceiling for this chart since last April. Though San West, Inc. did indeed trade above that mark late last year, right here and right now it seems to be the inflection point.

Since the signals are in place (positive MACD, a few days of gains, some nice buying volume yesterday), the only thing I need to see from this point to actually call San West a 'buy' is a move to $0.10 or better. I suggest using that as a trade-trigger (a 'stop' based long entry).


Buy the rumor, sell the news. That seems to be the M.O. with Keryx Biopharmaceuticals (NASDAQ:KERX) anyway. What should be a boost for the stock is having the opposite effect, validating my often-repeated lesson that traders come to conclusions about a stock in the absence of news, and then interpret news in such a way to support that conclusion. Thus, KERX is in the red today.

A pullback in itself is usually no big deal, but for KERX at this point in time, it's close to disastrous. The support line that had been driving the chart higher since May? This pullback just happened to send Keryx Biopharmaceuticals under it for the first time since then.  I might have been able to give the stock just a little leeway had it not been for one nagging factor... it had also developed a horizontal ceiling around $3.00.

You get the idea - no more higher highs, and a hint of lower lows. Maybe the beginning of the end.

That said, I wouldn't necessarily short the daylights out of Keryx Biopharmaceuticals just yet. Just to be sure, I want to see what happens when this chart makes a rebound attempt.... just a little upswing. I strongly suspect it will fail, and KERX will ultimately rollover and fall even further under that support line. I'm just letting you know all this today, as I may not get a chance to voice this plan when it's all happening.



I definitely wouldn't buy into it today, though I think it's time to put Imaging3, Inc. (OTC:IMGG) back on your watchlist of bullish ideas. Though I spent the better part of the last few months recommending bearish IMGG trades (or at least avoiding bullish ones), I feel all that's played out now, and that the new mode is a bullish one.... almost.

Frankly, I just don't like to chase stocks, and if you step into IMGG today that's exactly what you're doing.  At this point it would be better to wait for a pullback, which solves two problems.... it negates some of your risk if my outlook is wrong, and it gets you into Imaging3 at a lower price if I'm right. Either way, I expect a pullback to some degree from this strong runup.

One thing to note when/if you do decide to take a bullish swing on Imaging3, Inc. after a pullback - there's an important Fibonacci line at $0.77 that could be resistance on the way up (or maybe support later on). Not only was this level a problem in late December, but IMGG struggled there in September and October of last year. Just be careful.