BEHL, a penny stock that trades on the pinksheets is worth watching to me because it has shown 3 signs of strength already since a few months ago and now is in a consolidation pattern that will either be a falling wedge or just a sideways channel.
I like that advance that BEHL has had since a few months ago. The quality of the volume on the advances and the rapid decline in volume on the consolidations looks good to me. A lot of times on penny stocks I tend to see heavy volume on the advances but then also excessive volume on the consolidations. In my experience that has more often than not been a troubling sign. But BEHL has not shown that and right now price is holding within the range of .02 to .035.
So .035 is the top of the range. I do not know how much longer this consolidation will last, but when either of those two blue dotted down trending lines on the chart above are violated, it will be the first sign that change is at hand. I think there is an outside chance BEHL could do a swing low to .015 before the uptrend resumes, but I could be wrong.
This penny stock apparently is in the right sector at the right time. Crude oil is booming again and everyone is talking about green energy again. Biocentric Energy Holdings is working on a pilot run of an algae farm that is able to generate fuel. You can check out their website yourself. It is a pretty compelling concept to be able to create fuel from algae.
The companies project proposal is “A 5 million dollar investment to develop 100 acres that will produce 27,000 barrels of oil per year, yielding net profit of 1,000,000 per year”
So what you have here is a pinksheet penny stock with a bit of a good story, maybe even a very good story. So the story here could help underpin a run possibly. The technicals look fairly good as BEHL consolidates now. But again I just do not know how much longer this consolidation will last. It is possible we may get a break by the end of this month…
But anyway this one is just on watch for now.
I haven’t decided whether or not to put these pinksheet and other penny stock plays on the BestOnlineTrades recommended list. It is probably not a good idea because these little ones have so many other unusual trading elements to them that makes them difficult to recommend or even predict for that matter.
Perhaps I will create a separate recommend list just for Penny Stocks for entertainment purposes only.