Wednesday's Top Prospects (or close to it anyway): YGE, CRDC, SHZ in Focus
If you're looking for the most and best trading action on Wednesday, then be sure to start your search with Cardica, Inc. (NASDAQ:CRDC), Yingli Green Energy Hold. Co. Ltd. (NYSE:YGE), and China Shen Zhou Mining & Resources Inc. (AMEX:SHZ). Though none are starting out the same way, all three are in - or on the verge of - breakout efforts. Take a look.
Starting with the most challenging (psychologically), Cardica, Inc. may be on the verge of a sharp reversal. If you've been following CRDC at all of late, you know that's tough to believe. Shares have been in a freefall since August, sliding from a peak near $2.00 to a low of below $0.70 just a few days ago, and it's not even hinted at moving higher since then. So what says a bounce is nigh? A couple of major (even if obscure) clues.
The big one is the huge volume spike that CRDC gave us on December 7th. That was an unusual 372,000 shares behind a nasty move lower, suggesting it was the capitulation move. The second clue is a follow-up to that capitulation... the stock hasn't moved any lower since then, telling is all the would-be sellers were washed out. Though Cardica still needs to make one convincing bullish thrust higher to start the upward snowball, there's a ton of potential here for those with some intestinal fortitude. 
If the name China Shen Zhou Mining & Resources Inc. rings a bell, it may be because I took a look at it - for bullish reasons - back on December 4th. I liked the way it was testing the 100-day moving average line as resistance, and though SHZ hadn't hurdled that key line yet, given the way the stock had started to work on a bigger-picture rebound, I felt it was one worth keeping tabs on.
No, SHZ hasn't yet pushed above the 100-day moving average line, despite two more attempts to do so since the 4th. But, that persistence is a clue in itself. So is the fact that it bounced right back after brushing the 20-day moving average line with today's low (the first time China Shen Zhou Mining & Resources has tested that short-term moving average line since all this work started). Yes, the chart still has to hurdle that 100-day moving average line at $0.38 to start the party, but this one is well worth watching (still).
Last but not least, Yingli Green Energy Hold. Co. Ltd. has been working on a bullish jailbreak of its own for quite some time, but sealed the deal today by blasting through the horizontal resistance at $1.83. The move also convincingly carries YGE past a trio of converging moving average lines, which in itself is a compelling detail.
The most compelling detail of all, however, is the one that's least obvious - after more than four months of consolidation [YGE had been trapped in a sideways trading range since August... how to you think those moving averages managed to converge?], the stock's got some time to make up for. That four month pause means the tank is full now, so though Yingli Green Energy Hold. Co. Ltd. may be a little overbought in the very short term with today's move, this is a longer-term breakout move. 
Bryan Murphy is a paid contributor of the SmallCap Network. Bryan Murphy's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.
Do NOT buy or sell SHZ, YGE or CRDC until you have read everything.
SmallCap Network provides comprehensive research and opinions on SHZ, YGE and CRDC. |
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| Date: | May 21, 2013 | |
| Price: | Free | |
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