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???? has been making a huge move over the past 2 weeks with record volume levels and huge gains. After consolidating some the past few days it looks like this stock could be setting up for another short term breakout that could spark a big move when looking at this chart on the longer term scale. Going back several years looking at the weekly chart this stock is stuck on a trading range with resistance set around .20. If this range is broken there really isn’t any significant resistance ahead from here that will hinder this stocks ability to become explosive on the breakout.

Looking at the shorter term scale of a 60 minute intraday chart ???? is forming a great looking ascending triangle pattern here. If price breaks out from .185 that will trigger a strong short term move which in turn could lead to the breakout of the longer term trading channel with resistance around .20. Being that this stock is in the speculative energy sector i think its very possible that we could see some huge gains coming in the near future for this little penny stock. They are hosting a conference call on the 23rd.

I want to go long a 1/3 position to test the waters here if price breaks out from .185

This entry was posted on Thursday, June 19th, 2008 at 8:37 pm and is filed under Day Trading, Technical Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.