Two Ready to Roll, One That Went Too Far: CIMT, ZNGA, and GNBT Poked and Prodded

If you need to some good, trade-worthy action, then put Generex Biotechnology Corporation (OTC:GNBT), Cimatron Ltd. (NASDAQ:CIMT), and Zynga Inc. (NASDAQ:ZNGA) on your watchlist. Not all of them are bullish, but all of them are brewing up some moves.

Yes, by all account the stock should be six feet under by now. But, there it is - Zynga Inc. is poking its head out, testing the waters of a major recovery.  If ZNGA can just get over one more big hump, this left-for-dead name may end up surprising a lot of folks, and rewarding a few faithful followers.

Simply put, though ZNGA has fallen from a peak of $14.55 early last year to a low of $2.09 late last year, since November, things have quietly changed. Shares have rocked their way above the 100-day moving average line, on the heels of a string of higher lows. If that's the beginning of the end, the market sure has a funny way of showing it. More realistically, the stock was oversold based on fears of something that never materialized - the company's got a handful of ways it can still perform. That remaining big hump for Zynga is the horizontal resistance line at $2.67. And close above that level should set of fireworks.

When Generex Biotechnology Corporation fought its way above a falling resistance line as well as above the 50-day moving average line last week, it was interesting to witness, but not something traders wanted to dive into. Why? Because such moves often stop and reverse as soon as they get started. And sure enough, GNBT was sinking again the day after the big surge, en route to a revisit with its 20-day moving average. Thing is, the bullish undertow never really went away. It just needed a chance to regroup. And, good news for the hopeful bulls...it has regrouped, and the uptrend seems to be renewed.

As it turns out, that 20-day moving average line acted as a floor, after acting as a ceiling for several prior months. And, though GNBT didn't make a huge rebound effort on Friday, that modestly bullish day drew a lot of buying volume, underscoring one key element that says the bulls just need to be patient with Generex Biotechnology shares now - there are a lot of buyers now, as indicated by tall and rising green/bullish volume bars. If the stock can clear the 50-day moving average line again, that should seal the deal, and the pace should quicken.

Finally, a name you specifically may NOT want to get into, or of you are in a trade, then a name you may want to get out of - Cimatron Ltd. It's giving us all the tell-tale signs of a top, and as such, may be on the verge of a fairly-significant pullback. 

Specifically, CIMT is overbought. The 39% runup since the end of October did that, leaving it particularly vulnerable to profit-taking now. And, we've also seen something of a blowoff top - the proverbial last hurrah - from the bulls with the volume surge Cimatron Ltd. left behind with the big gain from last Thursday. While volume behind a trend is normally a good thing, in this particular case with this particular chart, it may indicate the last of any would-be buyers have made their move, chasing it when things appeared to be perfect. That's often the kiss of death, though, and today's bar is the third clue that CIMT is on the verge of pulling back hard.

How so? Today's bar is shaped like an upside-down hammer, telling us the bulls faded in the middle of the day, unable to keep the rally going, as the sellers just kept on hitting the bid, undermining whatever bullish effort could take shape. Translation: There seems to be more sellers than buyers for Cimatron Ltd. as of today; the volume surge also confirms plenty of people are getting out while the last of the sidelined buyers clamor to get in. It all screams transition from net-bullishness to net-bearishness.