Stocks are deep in the red again today, and two of our three focus stocks are following suit. The third one is in the same boat, but has a much better shot at finding support soon. Let's take a closer look at charts of Conolog Corporation (NASDAQ:CNLG), Aastrom Biosciences, Inc. (NASDAQ:ASTM), and Jacobs Engineering Group Inc. (NYSE:JEC).

Let's take care of the easy business first.... if you were counting on Aastrom Biosciences, Inc. (NASDAQ:ASTM) to shrug off its recent weakness and stage a rebound, you may want to rethink things.

Aastrom Biosciences shares were hanging by a thread. After a string of lower lows and lower highs in October, support at $0.32 - where ASTM found support in April and May - was strong enough to at least stop the bleeding temporarily. Today though, with the move to $0.30, the stock is under support from November and March at $0.31. That's a breakdown.

As for a landing spot, Aastrom doesn't have any meaningful lows or retracement lines until you get to lat October's lows around $0.17. It's possible (not to mention scary).


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We actually looked at Conolog Corporation (NASDAQ:CNLG) in late September, encouraged by the strong wave of buying volume that was unfolding at the time. We included a caution though... unless resistance at $3.20 was broken, it was all irrelevant.

Well, Conolog didn't break through the ceiling, and instead quietly faded away - back to a low of $1.46, hit earlier this week. So why bring up CNLG again? Because the stock just keeps hinting it want to move.

The big clue is volume; we've seen a couple of high-volume pope over the last week and a half, while the bulk of the October pullback from Conolog Corporation was made on light volume. It may be days - or even weeks - until CNLG is in a position to bust through $3.20, but it could be an explosive move when it happens. So, here's your reminder. (I'll let you know via the newsletter if/when it's time to act.)


I know a lot of you are watching the chart of Jacobs Engineering Group Inc. (NYSE:JEC) with some concern, as the stock has given up more than a little found this week. Or, perhaps you were contemplating a short trade. Either way, there's really not much to get excited about.

There are a couple of support line that are likely to mean a quick end to the selloff from Jacobs Engineering Group. The first one is horizontal support $43.46, where JEC hot lows in early September and early October. That's not a great line in the sand, but it counts.

The other one is much more meaningful to Jacobs Engineering; it's the rising support line that extends all the way back to November of last year. By the time JEC pressures it, it could be around $42.90. Point being, the bulls don't need to panic, nor do the bears need to pounce. Current owner, just sit tight.


If you'd like to know of any changes in our opinion of CNLG, ASTM, or JEC (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.