The Truth of the Bigger Picture for ACHN, IFLG, and TRMA

I'll be the first to acknowledge that the reason I'm bullish on InfoLogix, Inc. (NASDAQ:IFLG) is a little bit ridiculous. At the same time though, I'll also be the first to point out that ridiculous or not, it's been working for anyone who's been swing trading IFLG. 

Take a look at the InfoLogix chart below. All that volatility? It's actually been framed by two amazingly precise support and resistance lines (blue). This small cap just pushed off the lower one today, and if history repeats itself (and I think it will), IFLG should be making its way back up to the $15.00 area - where the resistance line is now - within a few short days.

Silly? A tad, but it's been working. It's worth a small swing anyway.

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As much as I hate to be one of the guys who pours water into a boat that's already sinking, the fact is, the downtrend from Trico Marine Services Inc (NASDAQ:TRMA) has taken on a life of its own, and is much bigger than anything bullish that could be mustered for the small cap stock. The fact that TRMA lost ground on Thursday and is losing ground today - on strong volume - is the final nail in the coffin, as those two days were quite bullish for most other stocks. (If a stock can't do it in a bullish environment, how can it do it on a bearish environment?)

Worse, though you can't tell it on the daily chart of Trico Marine Services below, this stock actually fell to new multi-year lows early last month.... not exactly the kind of stuff that inspires new buying.

It stinks for the company too, in that the bearish momentum from TRMA shares may obscure any actual positive news from and about the company. You don't make money having sympathy though. This one's just taking on too much water to try and outlast the storm.

I know Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) is up firmly today, and that's apt to be exciting many of the bulls who've been biding their time with this small cap. That's fine - there's probably a bit of upside to be scraped off with ACHN in the shadow of today's move. In the bigger picture though, there's, well, a bigger-picture.

On the weekly chart of Achillion Pharmaceuticals below, we can see both sides of the coin. What's going well for ACHN is support at the rising floor (blue) that extends back to early 2009. Where this small cap is running into trouble is the falling resistance line (orange) extending back to late last year. Between the two, Achillon is simply trapped in a converging wedge. The thing is, it could be trapped in here for a while.... until it's much closer to the wedge's point around $2.45. Just don't try and squeeze blood from a turnip.



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