To say that Cardium Therapeutics Inc. (NYSEMKT:CXM) has been unimpressive this year - and last year for that matter - would be an understatement. Shares of CXM peaked at $11.90 in late 2011, and spend the next two years making their way back to the August (2013) low of $0.58. The stock has since wiggled its way back to the current price of $0.84, but the effort has largely been dismissed as volatility. Big mistake. When you take a step back and look at the bigger picture, you start to see Cardium Therapeutics shares are on the cusp of a monster-sized rebound.
For those not familiar, CXM is the company behind FDA-approved Excellagen, which is the combination of a syringe and a medicine designed to treat wounds... foot ulcers and surgical wounds, mostly. It's also working on Generx, which is a treatment for coronary disease. Cardium Therapeutics also owns the "To Go" brand of healthy snack foods. It's a limited line of products, and a small pipeline, but still, there's something compelling here. So what, pray tell, allowed the stock to lose nearly 100% of its value since the Ocotber-2011 surge? In a word, reality. Although it was in October of 2011 that Excellagen was approved, over the course of the next two years, the market slowly remembered that an approval does not guarantee sales.
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As they say though, nothing lasts forever, and it looks like an end to Cardium Therapeutics' misery is finally here. Yes, you have to look closely at the chart to see these clues, but they're there, and they're potent... almost.
On the daily chart of CXM, the fact that the bulls have drawn a line in the sand at $0.68 is a big deal, particularly since that floor has turned into a pushoff point for the current cross above the 20-day moving average line (blue) and the 50-day moving average line (purple), and as of today, even an effort to work its way above the 100-day moving average line (gray). Point being, we're seeing things that favor Cardium Therapeutics Inc. that we haven't seen in months... if not years.
It's not just the daily chart that's showing a bullish paradigm shift is underway for CXM, however. In fact, the weekly chart offers another huge clue that things are quite bullish for the stock. See the volume bars on the bottom half of the chart below. The green bars indicate bullish volume, and as it obvious, not only are the bullish volume bars taller than the red bearish ones, those bullish volume bars are getting taller and taller. Point being, the buyers are pouring in here, even if the stock hasn't taken flight yet.
The clincher for making this new uptrend from Cardium Therapeutics Inc. a trade-worthy one will be a close above the 100-day moving average line, currently at $0.88. If we can make one close at or above that line, that's really going to draw out the buyers and push this stock higher in a hurry.
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