Technical Reviews: MVIS, CTIC, NEXM

The market may end up logging a mixed session today, though doing so would only add to the confusion regained its current direction. The solution to that problem is to continue working with only the best of the nest trading setups, which tend to be at the smaller end of the size scale. To that end, here are some technical suggestions for NexMed, Inc. (NASDAQ:NEXM), Microvision, Inc. (NASDAQ:MVIS), and Cell Therapeutics, Inc. (NASDAQ:CTIC).

Keep your eye on the $0.51 level if you're a party that's interested in NexMed, Inc. (NASDAQ:NEXM) ... bearish or bullish. Based on the recent chart history, it's a major line in the sand. If NEXM slips even just a hair under it, it could jump-start a big wave of technical selling.

It doesn't take a long look at the chart below to get what I'm saying. NEXM has been testing $0.51 as a floor ever since the one-day-wonder rally back in early January. The highs have been getting lower the whole time though, so something has to give soon for NexMed, Inc. - and I fear it will be the floor that buckles first.

As for the importance of this line, it's a big one not just because NexMed shares have been knocking on that door for four weeks now, but also because the stock used to find resistance there. In fact, it was a serious trouble spot for NEXM rallies no less than three times since May of last year.

When prior resistance becomes support, it tends to play a much bigger role than it would if it were just simply a new support level. So, be careful if you're long on NexMed - a move to, say $0.49 may be all the sellers need to drive it to the $0.20's.

The question with Microvision, Inc. (NASDAQ:MVIS) is actually quite simple - do you trust the recent rebound effort, or no?. I for one do, even if only as a speculative trade. So, you can consider this a near-term 'buy' on MVIS from me.

I really zoomed out on the chart to show you where my confidence on MVIS stems from. Ad you can see, the low of $1.92 last week was also pretty much in line with resistance in the latter part of 2008 and early 2009. So what? It just means it's a big deal for Microvision shares, and can be trusted (as much as anything can be trusted in trading) as a reversal point with some muscle.

For proof that Microvision, Inc. uses former support as resistance and former resistance as support, you don't have to go any further back than the last half of 2009. The $3.22 mark ended up being a floor as well as a ceiling a couple of different times. Likewise, I think MVSN will play that pattern again here at $1.92 (as it has so far). In fact, this push-off should be good for a move back up to the $3.22-ish area, in my view.


I'm almost hesitant to get back on the Cell Therapeutics, Inc. (NASDAQ:CTIC) train again. No, strike that, I AM hesitant to get back on it. When I look at the chart though, I see a shape that would have me salivating were it any other stock. So, to be fair and unbiased (a critical trait for traders), I have to confess I'm bullish on CTIC in the short run... the very short run.

Without getting into all the heavy details, CTIC has found support again at the rising line that used to be the bottom edge of a triangle formation. My assumption back on January 12th - just after the upper edge of the wedge shape had been breached - was that Cell Therapeutics shares would be able to advance very nicely since they were finally free of constraint. And, I was right.... for a whole day and a half. An exercise rally on the 13th toppled the rally (profit taking) before it got going.

Now here we are again, making a similar move at the same support line. Though I still have concerns, the volume and the gains all hint at another upside effort from Cell Therapeutics, Inc. I'll buy in, but I'll be out of any trade before the 10th. That's the day we're supposed to hear the FDA's pixantrone verdict. It looks like the market's betting on an approval, but between a potential non-approval or a 'buy the rumor, sell the news' result (even good news), there's too much risk to hold it through the announcement.... I'm just trying to take a free ride on the hype.