Technical Review of CRXX, CTIC, RODM, and HEB

Don't look now, but a few stocks are close to making some big moves if they haven't started on already... though not necessarily for the better. Hemispherx Biopharma, Inc. (HEB), CombinatoRx, Incorporated (CRXX), Rodman & Renshaw Capital Group, Inc. (RODM), and Cell Therapeutics, Inc. (CTIC) are the most interesting - and possibly trade worthy - names to consider right now.

Between May and July, Cell Therapeutics, Inc. (CTIC) worked their way into a wedge formation. The upper side of the triangle shape finally broke in August, suggesting the stock was ready for round two of buying. It's been completely unwound since then.

In fact, CTIC has not only broken back under the support line of that wedge, but has fallen back under the resistance line as well. In other words, it's tough to be optimistic about Cell Therapeutics here.

With no other potential support lines in place, it won't be surprising if Cell Therapeutics shares make their way back to May's gap level around $0.50. Considering there's no pixantrone news slated for before the end of this year (and the fact that time has only been unkind to pixantrone's perception), there's not a lot of other potential paths for CTIC.


It hasn't quite happened yet, but Hemispherx Biopharma, Inc. (HEB) is on the verge of a meltdown.

The chart says it all. Hemispherx has been in a sideways mode since July.... a no-no for investor purposes, as stagnation causes boredom, which eventually leads to selling. Moreover, the support side of this sideways range is on its last leg. HEB hit lows of $1.86 in August, but has touched $1.81 last week, and $1.85 today. That's not helping any.

So, while Hemispherx have yet to actually implode, they could do as at any time. When/if it happens, a move back to the $0.50 is possible, though we'd encourage you to watch HEB day by day - this one could stop and reverse several other places.


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It was a good run, but Rodman & Renshaw Capital Group, Inc. (RODM) shares are likely to take the break they hinted they would take last week. The stock's up a bit today, but just isn't challenging last week's peak of $6.66. (In fact, today's mild effort is fading already).

The red flag isn't the weak attack Rodman & Renshaw Capital is making on the recent peak though... at least not by itself. The problem is the tapering buying volume we've seen behind the last two days of rebound effort from RODM.

As for where Rodman & Renshaw may land with this pullback, we're not expecting disaster - just a healthy correction. The Fibonacci lines at $4.50 and $3.13 would both be reasonable rebound levels. If RODM falls under $3.13 though (not likely), then a return to $0.90 is possible.

We took a bearish stance on CombinatoRx, Incorporated (CRXX) back on September 27th, when the stock was on the verge of tumbling under a key support line. The stock did indeed break down, but it may not be over yet.

Oh, don't misunderstand - we know CRXX is up today, by about 20%. Volume's pretty strong too. The damage is done though... CombinatoRx fell under support, and between today's intra-day pullback and opening gap, there's not a lot left in the tank.

The support level at $0.71 is still a possible downside target for CombinatoRx, though the key point here today is just that CRXX isn't likely to make any real follow-through on the recent rebound.

If you'd like to know of any changes in our opinion of CTIC, RODM, HEB, or CRXX (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.