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.