Technical Reviews: PEIX, HEB, JASO

Two good days in a row? Stranger things have happened. Though it's still not clear if the market will be able to muster a third day of gains tomorrow, two of out three focus stocks look like bullish setups. Here's a deeper look at the charts of JA Solar Holdings Co., Ltd. (NASDAQ:JASO), Hemispherx BioPharma, Inc. (AMEX:HEB), and Pacific Ethanol Inc. (NASDAQ:PEIX). 

I know it was only a few days ago - January 28th to be exact - that I posted a message about Hemispherx BioPharma, Inc. (AMEX:HEB) to the same effect. I don't care though.... I have to say it again. HEB is dropping a lot of hints of a rebound, and could march higher soon, and fast.

As of that last look, we knew that HEB had put up a couple of nice daily gains on growing volume, on the heels of support at $0.54. Though the stock's not actually any higher than where it was then (four sessions ago), we've seen support at $0.62 materialize, and we've seen Hemispherx BioPharma push into new multi-week high territory. Best of all, today's buying volume is on pace to be the biggest accumulation day since the early December gap (and that December volume spike was actually a bearish move).

I'm going to stick with my original target of $1.50 for Hemispherx BioPharma, Inc., which is where it topped out in late November. That's not a hard exit point for HEB though.... just a checkpoint level. The potential for a move back to the $2.00 is hiding in there.

It was a good ride while it lasted, but the party's over for Pacific Ethanol Inc (NASDAQ:PEIX). The stock started to break down a couple of days ago, but really unraveled today when PEIX hit a low of $1.74.

The beginning of the end came on Monday, when the lower edge of a pretty well defined wedge formation for PEIX was cracked. The bleeding stopped with a low of $1.84 yesterday - in line with the first key Fibonacci retracement level. Unfortunately, the bleeding started again today Pacific Ethanol shares with the move to $1.74, which is obviously under that key Fib line.

Now that the damage is done, I think we at least have to assume Pacific Ethanol Inc. is headed to the 61.8% retracement line. Honestly though, given that there's no other support area around there, I have doubts that PEIX will even find a floor there.


Here's a quick and short-term swing trade for you.... JA Solar Holdings Co., Ltd. (NASDAQ:JASO). I see the potential for JASO to move as much as 45% over the next several days (maybe a few weeks), if the stock's pattern continues to repeat itself.

The chart if JASO below pretty much tells its own story, so I won't complicate it by using too may of my own. I'll simply point out how JA Solar Holdings shares have found support at a persistent and rising support line that goes all the way back to March of last year. I think we have to take the current rebound at face value, given how well its rewarded traders in the past.

On the flipside, there's an upper edge to this bullish trading range for JA Solar Holdings Co. - it's just not as defined as the support side. From the lines I plotted though (which touched the most nodes available), JASO could reach the lower $7.00 area before running into resistance. I'm sure it won't get there in a straight line, however.