Bioelectronics Corp (BIEL)

[3percent]

This is from SmallCapNetwork.com

And finally, Bioelectronics Corp. (OTC:BIEL) is back on the radar after a very solid two-week run after a six-month stretch of nothing but weakness. BIEL has moved from $0.022 to $0.037 since the beginning of March, following a tumble from a high if $0.122 back in September of last year. The rebound may well be a hint of more bullishness to come.

There are several aspects of the chart that I like, the biggest of which is the bearish 'channel' (blue) that was framing the downtrend has been broken. And, BIEL has also punched through the resistance of its 50-day moving average line (purple) for the first time in months. All of those are bullish hints for Bioelectronics Corp. Best of all, the stock made the move organically, meaning it wasn't 100% reliant ion a specific news event to make this progress. This points to longevity. On the flipside....

While we're seeing some clear bullish progress from Bioelectronics shares, any longevity for an uptrend is being called into question today now that the stock's overbought. Plus, there's been a clear lack of volume growth behind the rally - a major red flag.

So, here's how I'd handle it..... do nothing today. Let's see of this is for real or not. The litmus test will simply be the ability to stay above and form a base above the 50-day line around $0.033. If Bioelectronics Corp. can survive a bearish pushback for a few days at current levels, then we'll know this move is trade-worthy. Anything else, and this is just a repeat of the fakeout we saw in November.