Welcome to the inaugural MicroCapClub technical analysis review. My goal is to provide a periodic look at favorable microcap charts. Allow me to preface things by saying that given the reversal on Friday, this market looks to be in a rather precarious spot. We know microcaps can have a mind of their own, but there is certainly no reason to be overly gung-ho about buying any of the following charts. Please use caution, and stay nimble.
For a quick perspective, let’s start by looking at the Russell Microcap Index (IWC), which is perhaps the most widely followed microcap ETF:
The appearance here is neutral at best, and switching to bearish if trendline support at $50.5 is lost. Price action needs to overcome resistance near $52 should bulls wish to reassert themselves.
Axesstel (AXST) is stair stepping nicely and looks ready to challenge the July high. Note how the red 100ema is acting as support, and be weary of a close below it.
Vertex Energy (VTNR) flag seems constructive and may provide an opportunity for entry near $2 this week. Loss of 200ema & subsequent trades below $1.9 would bust the pattern.
Auxilio (AUXO) going up against $1.15 again. Needs volume to take out supply, but then a trip to $1.4 could come quickly.
Full House Resorts (FLL) big surge in September, and now an orderly pullback to the 200day ema on slackening volume. Good bounce potential off $3 area.
(CMKG) is razor thin but has a great long term chart, no debt, and trades roughly on par with its book value. Does this company merit closer inspection?
Comments / Questions / Suggestions encouraged – Locate additional setups via @chartseer on twitter.
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