Reversal Setups: ADTX, SONM, TXMD

ADXT Daily Chart 4-22-22

ADTX Daily 4-22-22

ADTX Analysis

ADTX hit $9.58 on 8/6/2020, but has been on a progressive downward trend since. It reached a low of $0.32 on 2/24/22. After a move to $.5450, it has retraced to a low of $.3431 on 4/21/22. Assuming it holds above this level, the pattern appears to show a similar basing, reversal setup similar to that of my recently discussed OCGN chart.


SONM Analysis

SONM hit a split-adjusted high of $182.575 on 6/7/2019. It fell swiftly to a split-adjusted low of $5.00 on 3/13/2020. Since that point, the chart presents an ending diagonal pattern. From 3/15/22-3/18/22, #SONM experienced around 145 million in volume, including 90 million on 3/15. That is a lot of volume for a stock that trades less than a million shares most dates. All of that volume doubled the share price from $.5950 to $1.20. That move retraced and the pattern shows a short-term head-and-shoulders pattern from 2/24->3/18->4/22. As the saying goes, “Volume precedes price.” The volume on the retrace has been much lower. Since 3/31/22, the volume has only exceeded 1 million shares once, and that was an up day on 4/14/22. This setup, including the inordinate volume in the March move, means there is likely a much more powerful Wave 3 move in the offing.


TXMD Daily Chart 4-22-22

TXMD Analysis

TXMD has been on a long-term gradual downtrend since touch $11.26 on 12/29/2015. After moving from $0.853 on 4/15/20 to $2.75 on 2/9/21, the stock has been in an ending diagonal pattern. This medium-to-long term pattern occurs at the end of a downtrend, just before reversal. Notice the typical tightening of the price range following the 5/11/21 low at $1. The near-term low was $0.18 on 2/24/22, followed by a near-term high of $0.46 on 3/23/22. It has since retraced to $0.23 as of 4/22/22. This type of quick up-and-down move is typical of a bottom bounce. I anticipate a narrow price range for the next week or so. However, if the price holds at or above $0.18, it should attract more buyers. And a move back toward, and through, $0.46 will lead to a surge in volume. Ending diagonal breaks are swift and powerful, and the $2.75 high from 2/9/22 is a potential target.

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