Oct 16, 2009 @ 12:44 PM PDT
When the recession hit, Audiovox was already in the process of cutting its fat, whereas other companies were only just beginning.
I'm afraid I've got a little bad news for anybody who owned MedClean Technologies Inc. (OTC:MCLN) before today - the best is likely to be over. Say what? The stock's up 31% today. What's not to like? The gain's huge to be sure, but a couple of items say the torch is literally being passed from the bulls to the bears as I write this.The shape of today's bar is my biggest concern regarding MedClean Technologies Inc. A gap at the open followed by a move to a peak price of $0.076 (which was more than a 100% gain for the day at the time) has been followed up by a move back to the opening price. The pattern is called a doji, and in this case, MCLN is making what's called an upside-down hammer doji.... a strong hint of a downside reversal, particularly when they occur after strong rallies.
The other red flags being waved by owned MedClean Technologies are the gap (which is forgivable), and today's volume spike (which suggests just as many people are getting out as there are getting in) on the price surge.
In short, I'm expecting MCLN to slide much lower, perhaps back to the $0.02-ish area.
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Labopharm Inc. (NASDAQ:DDSS) found a plethora of support a couple of weeks ago, and is making good use of it. I think there's enough fuel in the tank to drive the stock much higher from here, perhaps back up to the $3.00 area.
The chart of Labopharm shares below shows three distinct support lines, each of which has a solid basis (at least two nodes). The interesting part here is that these lines all intersected at $1.40 right around the time DDSS was hitting lows around there. The combination of all three was just too strong of a floor to crack. Instead, Labopharm used them as a springboard.
From here DDSS shouldn't find any major resistance until the $3.00 is reached. That's where the stock peaked in early 2008 as well as in July.
The weekly chart of Labopharm Inc. below shows all of this pretty clearly.
Don't get too excited about Health Discovery Corporation (OTC:HDVY) just yet. Today's 100% pop is solid, but a major hurdle is dead ahead.
The Fibonacci lines on our chart tell us quite a story about where Health Discovery Corporation shares should - and have - made reversals. The 61.8% retracement was support for most of November, and now, HDVY is on the verge of testing resistance at the 38.2% retracement line (at $0.293). Unless/until the ceiling around $0.29 is broken, I feel Health Discovery Corporation offers more risk than reward. But, it's not just the Fib lines in the way. You can also see $0.28 was a peak in late October, as it is so far today.
One of those two levels (if not both) is apt to quell the HDVY rally. Besides, the strength of the rally since the middle of last week has yet to be supported by volume.
Bottom line? I've got a feeling Health Discovery Corporation shares aren't worth chasing from this point.
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