Technical Outlooks for GTWO, SNSS, and ATHX

Though stocks are getting deeper and deeper in the red today as the clock ticks away, Athersys, Inc. (NASDAQ:ATHX) is proving itself compelling by the virtue of its gain. In short, I think there's a good chance of some upside movement with ATHX.

In simplest terms, we're seeing evidence that the downtrend has turned into an uptrend. And, since both were/are pretty decisive (a string of lower lows and lower highs, and now a string of higher highs and higher lows), I think we can assume more than a little certainty that Athersys, Inc. is indeed in a new uptrend. The slightly-higher buying volume is another layer of evidence in support of ATHX.

As for an upside target, I just don't know. There's no prior relevant support or resistance levels Athersys in view, and that lingering gap from December isn't making it easy for the bulls. I think ATHX is a case where a fairly tight trailing-stop would work best. That'll get you out pretty quickly when we start making lower lows again... whenever that may be.

Yikes - Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) just dug itself into a slightly deeper hole. I pointed out several days ago that the stock was close to breaking under an important support level at $1.06. Not only has that line been broken since then, but it's been tested and verified as resistance.

Take a look at he chart, and you'll see what I mean. The $1.06 level was support in December, but SNSS just sailed right under it a couple of weeks ago. Fishing for a rebound, the bulls made an effort on Tuesday (the 2nd) to snap the losing streak, but the light-volume effort ultimately doomed Sunesis Pharmaceuticals. Once at $1.06, the sellers got started again.

In the meantime we've actually watched Sunesis Pharmaceuticals make lower lows (like today) in the shadow of the failed rebound attempt. Though the selling volume is still a little light, I think we need to take this one at face value and assume SNSS is headed lower to the next checkpoint.


Looking for a quick, short-term idea? Try Gen2Media Corp (OTC:GTWO) on for size. I've got a feeling the stock's brewing up something, even if it's not permanent. Moreover, the sky's the limit for GTWO.

Just to explain what's going on with GTWO - and why I'm bullish on it - a very positive research report came out on the stock yesterday. And, a wave of stock-pickers all jumped on board. And why not? With the float as small as it is for Gen2Media Corp., and with volume as small as it is (or was), a little hype could go very far in getting the stock to move.

While I normally wouldn't chase hype, and I'd rarely follow a 22% pop like we're seeing from Gen2Media shares today, I think this one is actually a decent speculation at this price. Despite the jump in price today, GTWO is neither overbought, nor testing new highs... there's room to run. The fact that the company is on a PR rampage at  the same time all this is happening is just icing on the cake. Just don't get married here.

No target for Gen2Media - just ride the wave while it lasts.