Jul 23, 2010 10:31 AM PDT
Just when you thought it couldn't get any worse for Citizens Republic Bancorp, Inc. (NASDAQ:CRBC), it gets worse. Yet-another round of downside movement could be around the corner.
There are a couple of thing in play here on our chart of Citizens Republic Bancorp. One is a falling resistance line. The other is a horizontal support line..... two of them actually. The first support level for CRBC is at $0.56, and is currently under attack. The second one is $0.50, where the stock hit lows in July.
Given the combination of a resistance line that's been guiding Citizens Republic Bancorp shares lower along with a high likelihood that he support lines will fail, I suspect CRBC is yet again headed to new lows. If you wanted to play it safe, you could wait for the stock to tumble under $0.50.
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This isn't our first go-around with EntreMed, Inc. (NASDAQ:ENMD). We went bullish on the stock back on October 5th when it was trading at $0.53 and had just broken past resistance. We then advocated taking profits on October 9th when the stock reached - after an excessive runup - a price of $0.93. That's a 75% move. (And it's a good thing we bailed out... the stock was back to $0.60 a few days later.)
We bring our history with EntreMed shares up now simply because history repeats itself.... ENMD has surged over the last three days to the current price of $1.11. We think now's a great time to take profits again before we get the same pullback we did the last time.
A couple of mild warnings from EntreMed, Inc. shares are part of the trading rationale, the biggest of which is the shape of today's and yesterday's bars. The close has (so far, for today) been well under the highs of the day, suggesting that the sellers come out of the woodwork whenever ENMD starts to really extend. It's an omen of the struggle the chart could face soon.
If you like it, simply wait for a pullback.
I actually posted a bearish view of Bioelectronics Corp (OTC:BIEL) a couple of weeks ago. I also caught a little bit of flack for it, though the debate was a good one. In any case, an updated look is merited after today's 6% dip.
At the heart of my bearish outlook from October 21st was the way Bioelectronics Corp. shares fell under a key support line at $0.078. Given that the stock was overbought anyway, I anticipated more downside before any recovery effort. And, with BIEL shares currently at $0.061, I;m glad I stuck to my guns.
After reviewing that chart again, I think it's now worth mentioning that Bioelectronics Corp. has found support at $0.055 in recent months (August, to be specific). Though my ultimate belief is that BIEL will move lower than that, I'm, going to be watching for a reversal around that area. You should too.
As before, this short-term technical forecast has nothing to do with the stock's actual 'value' based on the underlying opportunity. If you're optimistic and bullish on what Bioelectronics, you should be buying on any dip.
If you'd like to know of any changes in our opinion of CRBC, ENMD, and BIEL (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.
