Although stocks are tanking today, two of today's three focal charts are actually bullish... perhaps a nice hedge (or better yet, leaders of a marketwide rebound). Either way, a closer look at Caliper Life Sciences Inc. (NASDAQ:CALP), ParkerVision, Inc. (NASDAQ:PRKR), and Nephros, Inc. (OTC:NEPH) is deserved, since each is an opportunity.
If you thought the last three months were painful for
Nephros, Inc. (OTC:NEPH), just wait - it could get a lot worse in little time.
There are two things going on with for Nephros, Inc. shares that are going to force the market's hand. The first one is the descending wedge that's been in place since August, and the second is horizontal support right at $1.00. The wedge is going to close any day now, and force NEPH into a breakout or breakdown situation; I suspect it will be the latter, based on the consistency of the trend. There's still a bastion of hope, however, at $1.00.
If that support line fails as well, that should be all she wrote for Nephros, Inc.; there's no meaningful support line for NEPH between thee and, well, basically zero (though I doubt it would get that bad). Keep it close.
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I really wish I had found
Caliper Life Sciences Inc. (NASDAQ:CALP) about two weeks ago, when the clues first started to develop. Nevertheless, there's still some meat on the bone.
We've got two things going on here for Caliper Life Sciences Inc. The first is the 100 day moving average line (purple), which has played a surprisingly instrumental support and resistance role for CALP in recent months. As you can see, it was a support -
and reversal - point near the end of last month.
The other key pattern here is a rising support and resistance zone, framed by the blue lines. As it turns out, Caliper Life Sciences shares pushed off this support line right around the same time they pushed off the 100 day line; the two augmented on another.
My only hesitation is that CALP is already so far above its major support levels, I have to wonder if the chart's too far gone this time around; part of me want to wait for a slide back to either or both of those support lines (and save myself about $0.40). The risk/reward ratio for Caliper Life Sciences
AT THIS POINT, however, says getting in at this level still makes more sense.
And finally, I feel
ParkerVision, Inc. (NASDAQ:PRKR) is a speculative buy at this point in time. It's got nothing to do with the company itself, however.
Rewind to November 10th. That's the day the stock gapped lower and volume spiked on confirmation of some dilution news that ParkerVision owners basically knew was coming. Have you ever heard the axiom 'buy the rumor, sell the news'? Yeah, well, though not as often, sometimes we see a case of 'sell the rumor, but the news'. I think that's what is happening right now for PRKR... the worst dilution and ill-will is already priced in, leaving the stock nowhere to go but up.
The other detail I'll point out (and I would even if the offering wasn't the reason for it) is the volume spike we saw from ParkerVision shares on the 10th. Those surges in volume - particularly after a strong trend like the downtrend we saw from PRKR for the six weeks before - are also frequently pivot points. In fact, we're starting to see buying volume grow on the way up, and it's much stronger volume than we saw on the way down.
Bottom line? I think ParkerVision is some low-hanging trading fruit with moderate upside potential.
If you'd like to know of any changes in our opinion of CALP, NEPH, or PRKR (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.
