Viking Systems Inc VKNG Still Looks Very Strong

Despite the recent market index weakness I continue to like very much the strength in VKNG or Viking Systems Inc. The SPY was down almost 3 percent today and yet VKNG managed to trade slightly higher on the day printing a doji indecision candlestick.

This is a classic example of how we are always dealing with a market of individual stocks that tend to have their own personalities.  Generally speaking the very small cap or microcap stocks can tend to have a complete mind of their own and ignore what the market indices are doing.

Their own supply demand relationships that exist within each individual stock is what ultimately determines how it will move.  Sometimes you will see small stocks that trade sideways, flat or down for a long period of time while the market indexes are doing something completely different.  So when the marked indexes finally do decide to get their own decline going, the individual stock does not participate since it has already exhausted its selling pressure.

The .34 and then .37 levels represent very key important resistance levels for VKNG.  If they are broken topside then in my opinion VKNG has possible targets in the $1.00 range.

The last two trading days in VKNG showed bottoming tails and showed good demand.  If the market indices do decide to plummet severely in the next few days I would view that as a chance to accumulate VKNG on the cheap only as long as it holds .28 support firmly.

Posted in Biotech Stocks, Stock Setups
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