MicroCabClub Technical Analysis Report

Ian Cassel Blog 4 Comments

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:

iwc

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.

axst

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.

vtnr

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.

auxo

Auxilio (AUXO) going up against $1.15 again. Needs volume to take out supply, but then a trip to $1.4 could come quickly.

fll

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

(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.

The MicroCapClub (mc2) is an exclusive micro cap forum focused on micro cap companies (sub $300m market cap). The MicroCapClub was created and founded by Ian Cassel as a way to share ideas and to learn from other seasoned like-minded micro cap investors. Our goal at MicroCapClub.com is quality membership and quality stock ideas.  If you are an experienced micro cap investor, feel free to Apply today.

Comments 4

  1. Post
    Author
    1. Hi Ian, truly my pleasure. Thanks for the invite.

      MEET has been strong but is approaching resistance and lacks volume expansion on a weekly basis: http://screencast.com/t/1VWz8BRPA9jQ

      While $5 seems possible, I could not get comfortable buying it up here.

      For social networking exposure, I think LVWD represents a better risk/reward presently.

      1. Post
        Author

        Thanks. I’ve been aware of LVWD for quite some time, and I believe Neil Cataldi has spoken to their management. Unfortunately, I can’t view them as investable until they actually file with the SEC. ie They don’t report their financials with the SEC.

        1. Agree with Chartseer. The (W)eekly is reaching a top and appears to be turning, while the (d)aily is definitely showing topping patterns. I don’t know much about this, but is looks like it was a momentum stock 2010-2011. Once these things lose the buzz and lose momentum they tend to fall back into patterns as volume decays. MEET looks currently to be headed to 3.52 or 3.02

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