Technical Reviews of CCTC, PWRD, and IFSL

The bulls are back in business today, though how long this bullishness will actually last is anyone's guess. We still suggest working with only the best of the best trade setups, and not trying to force something to happen that's not in the cards. To that end, here's a quick review of - and suggestions for - Ideal Financial Solutions, Inc. (PINK:IFSL), Perfect World Co., Ltd. (NASDAQ:PWRD), and Clean Coal Technologies (PINK:CCTC).

There was a bastion of hope for Perfect World Co., Ltd. (NASDAQ:PWRD)... until today. The downtrend that's been trying to materialize since the November peak - and after a big runup - may have just been locked in, and in a dramatic fashion.

There were actually two lines in the sand for PWRD. The first one was horizontal support (blue) at $36.68, which has arguably been in place since August. The second support level Perfect World Co. shares had hinted at was the 200 day moving average line (black), which actually did hold the stock up for a while over the prior two weeks. In fact, when PWRD rallied on Friday, it looked like support and a push-off was a done deal.

Today, however, it's all been trumped. Perfect World Co. shares fell under both support lines, send seem to be gathering plenty of selling volume. Based on everything I see here, PWRD has much farther to fall before rebounding - the downside of an excessive gain in the middle of 2009.

There is one last potential floor... the Fibonacci line at $34.54. I don't think it can save Perfect World now though. However, I do think the next Fibonacci retracement line (the 64.8% retracement at $24.73) would be a good starting target for PWRD.

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I'm always open to questions about stocks and the market, and even to questions about specific stocks I've talked about in the past. Here's one of the recent ones we received regarding Clean Coal Technologies (PINK:CCTC) after our first look at it a couple of weeks ago:

"I was wondering if Jim was going to do another chart update on CCTC. Since describing it as "the breakout" it has fallen 60-70% and wondering his thoughts on it."

Thanks for the question. In a nutshell, despite the pullback, my outlook hasn't changed - I think that burst of buying is a bullish sign for Clean Coal Technologies.

As for how/why I can remain optimistic, take a look at the chart below. Specifically, take a look at volume as the sock fell backwards over the last week and a half. The selling volume has never been all that strong for Clean Coal Technologies, but it's been tapering the whole time. In fact, CCTC has levels odd the last five sessions, as the bears have never been able to get a real grip. Hope that helps.

If you're reading this, then you probably already know Ideal Financial Solutions, Inc. (PINK:IFSL) is up pretty nicely today. What you may not know is how important today's progress is in building an even bigger rally. With just another step forward (albeit an even-tempered one), IFLS could rekindle the move that carried it to $0.011 just a few months ago.

Since December, horizontal resistance lines have formed at $0.0038 and $0.004. IFSL cleared the lower one today, and is working on the other one as I write this. Simultaneously, the 200 day moving average line (black) is back in the picture... Ideal Financial Solutions shares crossed back above them today. Were it one or the other of these two hints, I might dismiss it. To see this all line up at the same time for IFSL, however, is a powerful clue.

The risk that Ideal Financial Solutions, Inc. shares are running here is a repeat of what we saw in early January, where the move was too good for its own good. IFSL rallied back above the 200 day moving average line then, but got so overbought it had to retreat. Given the slightly-better pace this time around, I think our odds of a sustained breakout move are better now.

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