Most of the time, most stock charts aren't offering any real hints as to that chart's next direction. That's why when hints are dropped, traders need to pay attention. The market's latest round of high-odds hints have come from Nordic American Tanker Shipping Ltd. (NAT), Hemispherx Biopharma, Inc. (HEB), Adventrx Pharmaceuticals Inc. (ANX), and ReneSola Ltd. (SOL). Here's a closer inspection of each.
Shares of
ReneSola Ltd. (
SOL) have been walking a fine line since March. Or, perhaps it's more accurate to say they've been riding a fine support line ...higher.
At first glance it may seem as if it's business as usual for the bulls... a pullback to the support line, and then more gains. Take a look at what happened after the early July push off that support line though - ReneSola didn't make a higher high this time.
Now fast forward to this week, and specifically to today. The retreat has been pretty strong (and on rising volume), and even today's buying effort faded pretty quickly. It's only a worry at this point, but if this head-and-shoulderish pattern breaks its neckline/support, this overbought stock is ripe for a fall.
As a follow-up to
Monday's technical look at
Hemispherx Biopharma, Inc. (
HEB), the Fibonacci retracement line being referenced then has become the focus of attention since then. HEB fell under it yesterday, and is trying to get back above it today.
This one is too early to call, but Hemispherx shares are at the inflection point. Where the stock closes today will have great significance for the next major move. Stay tuned.
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We've zoomed out to a weekly chart to make a point about
Nordic American Tanker Shipping Ltd. (
NAT), but a daily chart can show it just as well. At best, Nordic American Tanker shares are trapped in a sideways range between $22 and $38. More likely though, NAT is trapped in a falling/bearish range, framed on our chart with the thicker set of lines.
Either way, the stock's peeling off from a resistance level, and has a long way to go before support is found again. If you look closely, you'll see the selling volume is still rising.
Yes, this is an economic recovery play, and
yes, the green shoots we've seen are real.
It's just that none of the green shoots have come from the marine shipping arena yet. Demand for those services is still very weak, as evidenced by the Baltic Dry Index. The Baltic Dry Index surged to 4291 in early June, but has since fallen back to 2612... a hint that nobody really needs or wants shipping services right now.
That's part of the reason Nordic American took a small loss last quarter and cut its dividend to $0.50 per share.
As with Nordic American Tanker Shipping, the weekly chart of
Adventrx Pharmaceuticals Inc. (
ANX) shows a little more scope than the daily chart. The difference is that the Adventrx chart is suggesting bullishness ahead.
At 18 cents per share you almost have to squint to see it, but this stock's momentum has shifted from bearish to bullish over the course of the last four months. More importantly, buying volume is increasing along the way.
Considering the stock was trading just above $5.00 a couple of years ago, there's a little bit of the "winning lottery ticket" mentality urging investors to step in now that the tide's turned. Factor in the fact that the company's recent fundraising has provided enough fiscal firepower for Adventrx to finish up the testing of ANX-530 (and get it submitted to the FDA), it may not be a bad long-term bet.
By the way, ANX recently crossed above its 200 day moving average line... a major technical coup.
If you'd like to know of any changes in our opinion of these four stocks (or if we officially recommend them as trades), be sure to sign up for free newsletter today. It's delivered 2 to 3 times per week.
