Charting Outlook: BZCN, NVAX, HTDS

BizAuctions, Novavax, and Hard to Treat Diseases are run through the technician's wringer.

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Monday October 26, 2009 8:20 AM PDT

By James E Brumley

Stocks are up today, and a couple of the stocks we want to examine are going with the flow. Better still, they may all actually be trade-worthy... even the one bucking the trend. Let's take a closer look at Novavax, Inc. (NASDAQ:NVAX), Hard to Treat Diseases (PINK:HTDS), and BizAuctions Inc. (OTC:BZCN).

Our last look at Hard to Treat Diseases (PINK:HTDS) was on the 21st. At the time we could only report that the stock was headed into the tip of a wedge, and that we only though the lower side of it would break. Things have changed since then.

What changed? In a nutshell, the lower support edge of the triangle did break down, letting Hard to Treat Diseases shares tumble as we figured. The salt in the wound came Friday and today, when we saw HTDS attempt to move above the support edge of the wedge formation, fail, and than slide back under that key support line.

As for where it might land, there's a Fibonacci line at $0.0088 that could be a factor for Hard to Treat Diseases. There's been no other support or resistance there in the past though, so it wouldn't be wrong to plan on HTDS falling under that mark. Play it by ear.



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We went bullish on Novavax, Inc. (NASDAQ:NVAX) back on October 15th after the stock reversed a downtrend at a 61.8% Fibonacci retracement line. And, we've not been disappointed.

At the time, Novavax was trading at $3.95; now it's at $4.38, and still on the rise. Though a 10% gain isn't anything to do back flips over, NVAX also still has some potential to tap. Like we said last week, we don't see any major resistance until shares revisit the 38.2% retracement line at $5.09.

And just to clarify (again), that's not necessarily an exit point. The pace of this rally from Novavax is healthy (sustainable), and the stock may well just walk right past $5.09 and on to $7.87. We simply want to scrutinize NVAX a little more when it starts to contend with that level.



Finally, BizAuctions Inc. (OTC:BZCN) - despite an erratic past - may be working on a breakout move that actually develops some follow-through.

This is nothing more than a notification that things are different now for BizAuctions shares... we have buying volume. We saw a ton of it Friday, and today's isn't bad either. We also saw a couple of heavy accumulation days two weeks ago. It's not a game-changer for BZCN (yet), but clearly something is going on that's different.

As for how I'd handle it, I'd do nothing yet. I'm going to out BizAuctions Inc. on my watchlist, so subscribers to the newsletter may be seeing this name again... either in the community pages or in the e-mail newsletter - I'm not sure. I just get the feeling BZCN could be worth monitoring for a while.

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

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