As stocks start to give up their early gains, traders are reminded that the current environment calls for only the best of the best chart setup. Among the most decisive movers we've seen today are Generex Biotechnology Corporation (NASDAQ:GNBT), Sun Microsystems, Inc. (NASDAQ:JAVA), and Hard to Treat Diseases (PINK:HTDS). Here's a better look at each one.
We actually turned bearish on
Hard to Treat Diseases (PINK:HTDS) several weeks ago, and as each support level was broken, our pessimistic call was made with growing conviction. Add another layer of it today.
Hard to Treat Diseases shares took a shot at a rebound on Tuesday when they ran right up into the falling resistance line I've been talking about for weeks. The rally was stopped cold there, and today's high from HTDS also seems to be confirming that line is a cap. In other words, more of the same.
The final blow could come today when/if Hard to Treat Diseases falls under $0.008.... a major Fibonacci line (61.8% retracement). HTDS fell under that line last week, but popped back above it with the recovery effort. If the stock falls under it a second time, that should be all she wrote.
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We last looked at
Generex Biotechnology Corporation (NASDAQ:GNBT) on
October 27th, warning you that the move under support at $0.56 was the trigger for a bigger move lower. I hope you were listening.
The breakdown did indeed take hold, sending Generex Biotechnology from $0.55 then to their current price of $0.50. Though up a little today after yesterday's new multi-week low, the effort from GNBT is tepid.
I still suspect Generex Biotechnology is on pace to revisit the March/April support level around $0.27. I'd like to see a little more selling volume from GNBT to feel fully comfortable with that idea, but the bearish effort has been fairly string without it.
And finally,
Sun Microsystems, Inc. (NASDAQ:JAVA) has made a nice consolidation and reversal pattern over the last week and a half. I think the stock's going to emerge from this mess quite bullishly.
I really with I could pinpoint what it is I like about this chart of Sun Microsystems, simply because I think this it's a great pattern to keep in mind fort the future. I can't though. About the best I can do is describe how the (1) height of the consolidation after the tumble, (2) the decisive switch from red/bearish to green/bullish bars, and (3) the V-shaped bottom all combine to suggest JAVA is positioning for a bounce.
As for a target, I suppose the ceiling around $9.20 -
where Sun Microsystems treaded water during Q3 - is the best one to start with. I'd be willing to hang onto JAVA as a potential breakout candidate after that though.
If you'd like to know of any changes in our opinion of GNBT, HTDS, or JAVA (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.
