News Details – Smallcapnetwork
Cell MedX (CMXC) Shares Are On the Launchpad
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February 2, 2024

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PDT

Happy hump-day friends and fellow traders. Yes, the newsletter is a little earlier than usual today mainly because we wanted to get it in your hands before the end of the day. There's something interesting going on with one of our Featured Stocks, and you may want to act on it before Wednesday's closing bell rings. Remember Cell MedX (CMXC)? This is the name we introduced to you back on March 2nd, excited about a brand new technology it's developed as a means of treating diabetes. In short, the company's been testing the application of electrical currents to a human body's cells to restore their health and functionality. The premise seems to have worked in observational trials, and most everyone seems to expect similar efficacy from the official clinical trials that began earlier this month. That's not what we wanted to focus on regarding Cell MedX today, however... not even close. Giving credit where it's due, it was James Brumley who first saw it and pointed it out. I'm just taking his ball and running with it. Long story made short(er), CMXC shares have been moving into the tip of a converging wedge pattern since the middle of 2015. If it wasn't so well defined, we may not care. When the highs and lows that mark the boundaries of a triangle patterns are this precise though, there's something to it. You're best served by paying attention to it. Take a look at this weekly chart. Now, as you can also make out on the weekly chart, the last couple of weeks have been especially bullish, with Cell MedX pushing up and off its key long-term moving average lines, and starting to test a very important horizontal ceiling at $0.39. Let's zoom into the daily chart of CMXC just so we can get a better feel for what's been going on in the near-term timeframe. It's on this chart we can see a massive, high volume buy-in on Tuesday. Why? That's just it.... there was no news. It just happened. In fact, we've seen a couple of different high volume advances since the beginning of the year now. The bulls have tipped their hand, so to speak - they want in. We don't think the situation changes with the daily chart. In fact, it confirms the build-up is brewing, with the bulls using several key moving. average lines as pushoff points. The stock is still testing the waters of a break above $0.39, but the tide is clearly moving in that direction. Will it be today, tomorrow, or next week? Nobody knows. The undertow is in motion though, and that's half the battle. Now, there's not been anything specific this week to prompt such bullishness. For that matter, there wasn't anything specific to kick-start a slow but progressive advance since 2015. This is all part of a much bigger picture opportunity. Since we have time, room, and good reason to do so, let's go ahead and flesh out the overarching reason we think so highly of Cell MedX and its technology and why the stock's been pushing upward since 2015 The diabetes treatment market is projected to be worth $55 billion this year, and swell to $116 billion by 2023 as our diets and lifestyles turn the disease into a full-blown epidemic. And, we suspect those figures aren't even the whole story, There are a lot of ancillary problems diabetes causes that aren't treated as diabetes. One of them is chronic wounds. Another is chronic pain, or neuropathy. Still another is kidney disease.... and high blood pressure, ketoacidosis, and more - it's never 'just' diabetes for diabetics. Those additional side effects of diabetes can also cost patients and payers billions of dollars per year. The exciting but mostly-unspoken nuance of the eBalance device from Cell MedX is that it can also have a positive impact beyond lowering glucose levels. In the observational trials mentioned above, pain reduction and tempered hypertension were also seen in some cases where those details were logged. It's not terribly surprising, really. Electromedicine has been studied deeply enough to know that most cells need some degree of electrical current flowing through them to operate properly. By tweaking the voltage, so to speak, researchers have seen cells turn on in a way they can't otherwise, even including turning a cancerous cell's self-destruct system back on. In that light, the eBalance seems to have a lot of potential in the war on diabetes. We suspect, however, its real value could be in addressing all the other issues most diabetics have that usually aren't mentioned... preventing those secondary problems before they become problems. Prevention is much cheaper and much more comfortable than treatment after a risk becomes a full-blown issue. We just wanted you to know what the diabetes market was really all about, even if only for no other reason than to have some perspective on the disease's impact. We also suspect the chart's back-and-forth bullishness since 2015 reflects some investors' recognition that the electromedicine approach just makes good sense, and has a lot of potential. The market is slowly connecting the dots, but it looks they're starting to do so at a quicker pace. Bottom line: CMXC really needs to clear $0.39 to, as they say, 'light it up.' This seems to be the direction things are headed though, and for good reason. It's not too often you see a small cap stock dropping technical hints this healthy. Our biggest fear at this point isn't CMXC's downside, but the potential upside traders might miss should the stock meander above $0.40 and then just blast off before anyone notices. Speaking of preventive medicine, be sure to check your inbox tomorrow morning. We've got a new company profile for you, and this outfit is a poster child for cost-effective, smart problem-prevention. It's melded two ideas into one, and is giving the medical community something it's desperately needed for a long time. You'll see what we mean Thursday morning.