Stocks are fighting to recover from last week's selloff before further losses are taken, though we're still seeing more stocks that appear to be headed lower rather than higher. Among the most interesting today are Neuralstem, Inc. (AMEX:CUR), Novadel Pharma Inc. (AMEX:NVD), and Mesa Air Group, Inc. (NASDAQ:MESA). Here's a closer technical look at each one.
As of my last look at
Mesa Air Group, Inc. (NASDAQ:MESA) on
October 29th, I was right in my expectation that the stock would tumble a little further to a key support level; I was wrong about how little time it would take to get there.
On Friday, MESA gapped lower - and under a key support line - to hit a low of $0.15 before closing at $0.166. If you recall (and the chart shows this), that was where the last remaining support line for Mesa Air Group shares was at the time.
So what? As of right now, I have serious doubts that the support line is intact. While MESA is only barely under it, there seems to be little effort to jump-start a rebound here. I've got a bad feeling Mesa Air Group has already broken the floor, and the meltdown is on a delayed reaction.
If and when (I'm still not fully convinced) the breakdown takes hold, the $0.11 area is the nearest likely support level for Mesa Air Group.
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The bad news for current
Neuralstem, Inc. (AMEX:CUR) owners is that the stock is trying hard to crack a major support level. The good news is here's another floor just under the first one. The other bad news is that "just under the first one" is a relative description - it's about 20% away.
Over the last week, CUR has been relying on support at $1.25. Shares can't rest there forever without some progress though... a fact that was accented today when Neuralstem quietly hit $1.24.
If the support line as already broken as I believe it is, then Neuralstem is already headed back to $1.01. That's where we saw support (lots of it) between May and August. Based on that strong history though, I'd be very surprised if CUR falls under that line.
Before anybody jumps on board the apparent strength we're seeing from
Novadel Pharma Inc. (AMEX:NVD) today, you should know it's nothing we haven't seen before. All the prior instances did nothing helpful for the stock either.
As you can see from the chart, Novadel Pharma shares are just dealing with a truckload of horizontal resistance. And yes, there is a layer of it around today's high of $0.32. Even if NVD does break through it once and for all though, there's still another ceiling around $0.41.
Bottom line? Novadel Pharma may be impressive today, but don't be fooled. We've seen the same setup go nowhere over the last several months. NVD only belongs on your watchlist, and will only be interesting above $0.41.
If you'd like to know of any changes in our opinion of NVD, CUR, and MESA (or if we officially recommend them as
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