Technical Outlook for NVEC, SLNX, CTFO, GVBP

The broad market's turning a little docile as September winds to a close. However, a few charts are just gearing up for some big movement. Genova Biotherapeutics, Inc. (GVBP.OB), China TransInfo Technology Corp. (CTFO), Solanex Management Inc. (SLNX.OB), and NVE Corporation (NVEC) deserve the closest inspection. Here's what traders need to watch. 

Slow and steady wins the race, particularly when the climb is supported by a couple of major support levels. Such is the case right now with China TransInfo Technology Corp. (CTFO).

We'll be saying roughly the same thing for NVE Corporation, but for right now, let's just focus on the support lines China TransInfo Technology shares have been riding since June. As long as those hold up, so too will the uptrend.

The kicker is the massive inflow of volume today. Between strong results over the last three months coupled with a little extra attention today, CTFO should have renewed investor interest with its 6% pop.

We've got not target for China TransInfo - just ride the trend while it lasts. As for a stop, the support lines are the line in the sand.


There's practically no trading history from Solanex Management Inc. (SLNX), so take any technical read with a grain of salt. However, what we have seen so far has been quite bullish, especially considering the young age of the stock.

At the heart of the bullish outlook for Solanex Management shares is simply the way the chart's curled higher over the last three days after a pretty rough pullback. The volume on the way up prior to the dip was strong, the volume behind the selling was light, and the volume on the way up this time around of SLNX is strengthening again. It's just a good sign of interest.

There's no point is setting a target for the stock, though we will say watch closely when and if the prior peak of $0.75 is matched. Conversely, if Solanex Management comes back to last week's low of $0.35 cents, be ready to bail.

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The look at Genova Biotherapeutics, Inc. (GVBP) isn't so much a review of a new idea as it is the closure of an old one. We issued a warning on the stock on the 14th, and reiterated the warning on the 16th. The second one was the one to heed.... a case of right idea/wrong time (we were too early).

Regardless, the chart of Genova Biotherapeutics is one to etch into your memory, as it's a classic result of a pump and dump. To give credit where it's due, the pump was a very good one - and plenty strong enough to give anyone who wanted out a chance to get out of GVBP at a great price. It clearly left some folks holding the bag though.

The lesson learned from Genova? You never want to be the first one off the train when it comes to a stop. We don't foresee GVBP making any significant recovery effort form here.

Don't be intimidated by today's 6.8% gain from NVE Corporation (NVEC). It's nothing we haven't seen from the stock before, and part of a long pattern of two steps forward and one step back. The uptrend is not white hot, but reliable.

At the heart of this year's runup from NVEC as a rising support line that was, ironically, not touched with the latest dip to $53.50. It was close to that line though, so we'll count it as a touch.

Looking ahead, we expect the uptrend to persist as long as NVE Corporation as long as that support level holds up. This one could be considered low-hanging fruit (which of course may have been jinxed now that we said it, eh?)


If you'd like to know of any changes in our opinion of CTFO, GVBP, NVEC, or SLNX. (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered 2 to 3 times per week.