Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
If you want me to analyse a stock for you just drop me a line at [email protected] - Today I look at Camkids, China Chaintek, Optibiotix
Camkids (CAMK): Gap Resistance Pressures Price Action
While it may be tempting to regard Camkids Group as a potential recovery play, the charting configuration in the post autumn period suggests that there is no hurry in terms of getting back in the saddle for the bulls. The main feature which still haunts the price action is an unfilled gap to the downside seen in November, with the price action melting through the 45p level. The killer since then has been the way that despite a strong February to April rally attempt when the shares effectively tripled, the floor of the November gap above 40p was never really threatened.
When one sees such a failure related to a major charting feature, it is usually wise to avoid giving the benefit of the doubt to the bull argument for as long as possible. This is the case come even though we have seen a higher low from May above 10p versus the February support. At this stage we really a weekly close back above the 50 day moving average at 16.7p to suggest that shares of Camkids Group can regard as a bona fide bottom fishing opportunity. Even then it may be that most traders decide to stand aside, or even sell into strength in the first instance.
China Chaintek (CTEK): Ongoing Bear Run
What can be seen quite clearly on the daily chart of China Chaintek over the past couple two years is that we have suffered an almost uninterrupted decline for the stock with very few realistic enough looking opportunities to bottom fish in the hope of a bargain. That said, the December - January period and March - April this year did at least give us a slight hint that the worst for China Chaintek could finally be over.
Unfortunately for this to occur one would wish to see at least a higher high versus April resistance through the 55p level, or preferably a weekly close above the 20 day moving average currently at 56.81p. Should this buy trigger be achieved then the obvious journey here in terms of recovery is for a retest of January resistance at 70p. The timeframe on such a move seen as being as the next 2 to 3 months, but it should be noted that as little as an end of day close back below the initial May support at 35p could be enough to tip China Chaintek back into its ongoing bear mode.
Optibiotix (OPTI): 50p Target Now Appears Modest
Optibiotix shares have been one of the happier stories amongst the minnows on a fundamental basis, one that the market seems to have appreciated, but there is also good news on the technical front as well. This started as long ago as November with a break above the 200 day moving average then towards 11p, and this event was backed up by the crossover between the 50 day and 200 day lines later that month.
Since then support has been coming in towards the 50 day line now at 33p, with subsequent dips for the shares towards the feature in December, January and February, ahead of the latest push and acceleration to the upside.
What we are seeing now is the aftermath of a narrow bear trap rebound from below the 50 day moving average, something which should lead the shares significantly higher over the next 1 to 2 months, despite the extended gains already seen. In terms of what the upside could be the view here is that it is whether is no break back below the 50 day line at 33p one is justified in looking for a top of November price channel target as high as 50p over the near-term.
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