Penny Stocks

Viking Systems Inc VKNG looks like an Outstanding Position Trade

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The more I think about the most probable trading setups, the more I think that position trading is probably the most potentially profitable way to go because it allows you to participate in trends and ‘ride the bull’ so to speak instead of constantly pulling your hair out worrying about every little price tick. Position … Read more

Freddie Mac May Move in Sympathy with AIG soon

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Freddie Mac (FRE) currently price at 1.34 may move higher in sympathy with AIG American International Group, Inc. soon.  FRE continues to be dogged by the housing depression and the government involvement or lack thereof.

However the economy is on the mend and there are some bright spots appear that may lift the shares of Freddie Mac  FRE soon. 

If you put the share prices of AIG and FRE right on top of each other you will see a general tendency towards symmetry on some of the big moves each stock has made over the last year.  There appears to be a slight lag effect in the movement of FRE relative to AIG.

Significantly, AIG has just recently broken out north from a very long term downward sloping resistance line and what also appears to be a very large triangle formation.  Similarly Freddie Mac  FRE has also just done the same thing although it has not really had a breakout type move out of this triangle yet.  To accomplish that it will need to trade and move over the 1.38 level which it may do early next week.

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Penny Gold Stock CVRG Converge Global Continues to have Bullish Tendencies

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CVRG20091206

The overall chart structure and historical trading pattern and current trading action in the .046 cent gold mining penny stock CVRG Converge Global continues to look good for this beginning week of December the 7th.

My weekly indicators are telling me that this week that begins December the 7th is a possible breakout week for CVRG.  CVRG has the opportunity this week to make a breakout north above the critical .05 cent level.  A breakout here would come from a 3 month head and shoulders bottoming formation that is astoundingly symmetrical.

That head and shoulders bottoming formation could also be the last basing formation CVRG does as it may now be ready to start the mark up stage.  The blue arrows I have drawn in the chart show how CVRG has had progressively less and less selling pressure which is evident from the slope of the declines being less and less until they got to the point where CVRG basically traded almost completely horizontal during the October time frame.

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Gold Mining Penny Stock CVRG Converge Global Setting up for a MoonShot

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Before I even begin to talk about CVRG let me say this.  CVRG is a PINKSHEET penny stock that is extremely speculative and has all the normal disadvantages that normally come with pink sheet stocks.  I consider penny stocks in some ways less risky than options because they do not have time decay, premium and expiration, but that does not mean they still cannot cause major heart ache.

I made a decision a while back not to talk too much about pink sheet penny stocks here at BestOnlineTrades because they are an entirely different animal and just do not seem appropriate to mix in with all the other ‘big board’ topics I cover here.  But occasionally I make an exception and I am doing that now.

So having said that, and since I have free editorial reign here at BestOnlineTrades I want to tell you about CVRG, Converge Global.  It is a pinksheet gold mining penny stock.  The ONLY reasons I think CVRG could become a nice play for the next 2 to 3 months are because of the technical setup that exist within CVRG and also the backdrop of a parabolic exploding gold and silver price.

We have already seen a number of gold mining penny stocks blast higher in recent weeks and I expect this trend to continue.  SGCP (Sierra Gold Corp) up 900% from its recent lows, BRYN (Bryn Resources) up 4042% from its recent lows, KATX (Kat Exploration) up 1035% from its recent lows.  So clearly speculation is ripe and the gold mining pinksheet penny stocks are on fire and in heavy demand.  Part of the reason for this is simply a matter of supply and demand.  There are so few gold stocks to choose from that what you will see is ‘gold money’ funnel more easily into the micro cap gold mining plays on pure speculation and lack of other choices.

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CHB Champion Enterprises Setup Looks Good

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CHB Champion Enterprises has had some big volume come in recently (shaded in green on the stock chart above, click on it for full size).  And it is looking like a big move could be coming to the upside.

After a brief multi day spike up in March CHB has not really participated at all in the broad markets super rally.  After that spike up in March CHB pretty much has drifted sideways in what I consider to be a very long consolidation.

It drifted down in mid July in what appears to be a final bottom for CHB.  What is significant is that CHB did not continue to break down to retest the lows of March.  This is important because it is a hint of at least some strength in the stock and says that CHB is strong enough to resist a full retest.  It is good bottoming action I like to see.

Even more significant is that now CHB has had a big surge in volume come in on the recent advance and price seems to be consolidating in a sideways triangle type formation.

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CORS Corus Bankshares Could Get a Big Upside Pop Soon

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CORS is an extremely risky type of play.  But without risk, then how do you get reward?  Anyway, I think this bank stock could possibly get a big pop soon, maybe even within the next 2 days.  There is a huge short position and to be sure there are all kinds of trading games going on with CORS.

But I do like the recent much heavier than normal 5 day advancing volume, but admittedly without too much price follow through.  CORS has been flat for about a month and a half and it is perched right under a longer term resistance level.

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Quick Update on Sarissa Resources

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I just wanted to do a quick update on Sarissa Resources (SRSR).  Yesterday I said that I believed that the .081 low yesterday would probably be the final low.  Well today we took out that low slightly and closed at .083 .

I still think that we are going to get a violent upside reaction rally in SRSR pretty soon.  It may be good for 30 to 50% profits.  The real rule though is that we just do not want to see SRSR trade below today’s low.  As long as it does not do that, and maybe gets an inside bar, then I think the upside reaction could start.

You might say it is like trying to catch a falling knife.  Well not exactly.  Sometimes you can catch a falling knife if you are very very careful in how you go about it. 

I have seen this trading pattern many times already, and they have looked quite similar to the pattern in SRSR right now.  The fact that SRSR is a pinksheet stock does not really change the scenario or the final outcome.

One of the most famous upside automatic rally reactions I can remember was in a company called Taser Corp.  They are still public (symbol TASR) now but the stock has been languishing for years now.  But previously when they had enormous momentum the price hit a superbly exciting peak, but then literally crashed down similar to the way SRSR has now crashed.  But then sure enough an automatic rally ensued that took the stock into a violent trading range for months.

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