What do Chelsea Therapeutics International Ltd. (NASDAQ:CHTP), National Bank of Greece (NYSE:NBG), and Walter Energy, Inc. (NYSE:WLT) have in common. They all have charts worth a much closer look right now. That's not to say they're all dropping the same bullish hint. In fact, WLT, NBG, and CHTP are all dropping distinctly-different hints as to their likely near-term future. But, trading action is trading action no matter which direction it's in. Take a look.
Yes: Truth be told, shares of the National Bank of Greece have been working on a rally for a while. It's only been recently, however, that NBG has made it clear it's not going to give up. The stock crossed above the 100-day moving average line (gray) early in the month, and has continued to peel away. Yes, National Bank of Greece hit something of a soft patch last week, but the 20-day moving average line (blue) has since stepped up to the plate as a technical floor, rekindling the uptrend yesterday day and today. Perhaps most bullish of all is the fact that NBG has started to increase volume on the way up, after it cleared the 100-day moving average line,
No: With just a quick glance, Chelsea Therapeutics International Ltd. doesn't look like it's doing anything other than moving sideways. The longer you study the chart of CHTP though, the more it becomes clear that it's not only losing momentum, but has already lost momentum and is developing a downtrend.
The chart tells the story. Though the first three quarters of the year were very bullish one for the stock, with CHTP shares running from a low of $0.76 to a high of $3.30 hit in early September. Since then, however, shares have moved back under the key 20-day (blue) and 50-day (purple) moving average lines, and are putting pressure on the 100-day line as a floor. Although the bearish clincher would be a close under the 100-day line (gray) at $2.81, we've already seen the 20-day line cross under the 50-day average line for the first time in months, telling us the undertow for Chelsea Therapeutics International has already shifted for the worst.
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Maybe: Believe it or not, there's a rebound brewing from the coal industry. It's not a big one, but it's decent... decent enough to push Walter Energy, Inc. shares up 50% since June. In the meantime, all the key moving averages have made bullish crossovers, and even started to act as a floor. But, if WLT can hurdle one more line in the sand, that should really fan the bullish flames.
That line? It's the $16.34 mark, where WLT shares have been peaking since early September. But, the stock's been making higher lows that whole time, leading shares into a very tight space between support and resistance. Something's got to give seen, and considering Walter Energy shares have seen much higher volume on 'up' days than 'down' days of late, the odds say $16.34.
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