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Technical Review of SPNG, BIEL, LVS, QSII

|Includes:BIEL, Las Vegas Sands Corp. (LVS), QSII

BioElectronics Corporation, SpongeTech Delivery Systems, Las Vegas Sands, and Quality Systems are all setting up some interesting and trade-worthy action.

Don't look now, but a few stocks are getting positioned for what could be major moves in the near future. Charts of SpongeTech Delivery Systems, Inc. (OTC:SPNG), Quality Systems Inc. (NASDAQ:QSII), BioElectronics Corporation (OTCPK:BIEL), and Las Vegas Sands Corp. (NYSE:LVS) have all worked their way into suggestive patterns worth a closer look.

Quality Systems Inc. (QSII) hasn't actually broken out yet, but it's quite close - today may well be the day.

In late July and early August, Quality Systems shares broke under rising support (part of a wedge pattern) that looked as if it was the beginning of a major pullback. However, horizontal support around $50.90 once again caught QSII, and kept it within range of a breakout.

Now, thanks to a handful of decent gains with growing volume since the 19th, Quality Systems is knocking on the doors of resistance again.... the same ceiling line we observed with the wedge pattern between May and July.


 

Bottom line? QSII is worth watching.

This look at BioElectronics Corporation (BIEL) is a follow-up to our August 12th look, with which we pointed out that BIEL shares were approaching the tip of a wedge and were going to be forced out - one way or another.

Initially (for about a day) BioElectronics hinted at an upside move. The next day, and every day since then, BIEL was sliding lower. The bleeding may have stopped, however, at a major support level. The bar gave us a reversal clue as well.

One of the other ideas we mentioned on the 12th regarding the chart of BioElectronics Corporation was the Fibonacci retracement lines; the one of most interest was the 38.2% retracement at $0.059. Care to guess where BIEL closed yesterday after hitting a low of $0.055? It ended the day at $0.61, and is inching higher today. The Fib retracement may have sufficiently relieved any bearish pressure.

Yesterday's bar from the BioElectronics Corporation chart was also a pretty tall doji, indicating that the bears and bulls reached a volatile equilibrium, and the sellers handed the reigns over to the buyers. This could be an optimal short-term entry point.

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The chart of Las Vegas Sands Corp. (LVS) isn't complicated to interpret - the stock's not only overbought, it's running into a major resistance line, Factor in how the broad market is also starting to deteriorate, and Las Vegas Sands simply looks like a pretty decent shorting candidate.

A trader could make the case for LVS tumbling all the way back down to the support line, currently at $8.50 (but rising daily). That wouldn't be a bad target level in our view either. However, given the volatility of the casino industry's stocks, this trend may be best tapped by taking the chart one day at a time and just being aware when/if  Las Vegas Sands shares make any strong upside reversal efforts.


 

Finally, it looks as if SpongeTech Delivery Systems, Inc. (SPNG) is making a run... or was anyway. The stock broke past a ceiling at $0.179 with a strong move to $0.194 yesterday.

The problem, however, was a considerable lack of volume; all the SpongeTech Delivery Systems buyers seemed to jump in on the day before (the 25th), meaning the rally from yesterday (the 26th) was running on fumes. In fact, the tank looks empty today for SPNG; the stock's a hair in the red.

Nevertheless, if there's one thing we've learned about SpongeTech Delivery Systems during our three years of covering the stock, it's this.... once the company gets the stock going, it does what it can to keep it going for as long as it can. Case in point - May's runup.

SPNG is nothing you'd want to buy on the way down (like it is right now), since the dips can cut pretty deep as well. It's mostly something you'd want to buy on the way up. So for now, it's best left on watchlists only as a potential breakout candidate now that it's making some noise.

If you'd like to know when or if we issue trading alerts specifically for SPNG, BIEL, LVS, or QSII, then be sure to subscribe to our free e-newsletter. It's delivered two to three times per week.
Stocks: LVS, BIEL, QSII