Supatcha Resources Inc SAEI Gold Mining Penny Stock Looks Good

I do not normally talk about penny stocks that much here at Best Online Trades for obvious reasons.  But today I went long SAEI for several reasons.  One reason is that we are in the heart of penny stock season.  The other reason is that the gold sector is very hot right now (even though the gold price looks quite toppy now).  The third reason is that this little gem SAEI has a very tiny float for a penny stock.  Most penny stocks have huge floats and huge outstanding and authorized shares.  Not this one.

There are other reasons as well.  This penny stock appears to be shaping up in the form of a cup and handle pattern that could suggest a move to .40 cents or higher in the weeks to come. 

The risk reward seems very attractive to me here and that is why I went long.  This stock moved from .005 to .20 cents in 10 trading days to kick start the move.  That is a return of 40 times trading capital assuming one would have bought at the exact low and sold at the exact high.  The float appears to be in very tight hands and there also appears to be a rabid following of this penny stock.

I am looking for a move above .145 early next week as confirmation that SAEI is ready for prime time.

Penny stocks are of course very high risk plays.  They usually have alot less liquidity and very questionable fundamentals.  Still, if you read over my past postings here at BOT you will know that I tend to focus mostly on the technical analysis side.

It is often true that some of the biggest penny stock moves occur in the very late stages of a gold price run.  Sometimes it is an indication that the move in the precious metal is nearing its end.

Anyway for a few more details see this post: gold mining penny stock .

Posted in Penny Stocks

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