Small Cap Highlights
Mesa Offshore Trust (OTCBB: MOSH.OB)
For
Monday, January 14^th, 2008

Tony Golan
Chief Technical Analyst
StockProfit.com™

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This week I chose to highlight the chart of Mesa Offshore Trust (OTCBB: MOSH). MOSH spent the past year in a long-term sideways pattern, swinging between 0.05 on the downside and 0.15 on the upside. However, In mid-December MOSH hit a low of 0.05 and turned back up sharply. First, it rallied to a new high of 0.40, pulled back to a low of 0.17, then rallied to another new high of 0.50 on Friday. This rally has been accompanied by a strong volume surge, and the ability to come back and make another new high indicates there may be a serious up-trend going on here.

MOSH has not had an explosive up-move such as this on e since late 2005 - early 2006, when it went from 0.04 to a high of 0.26. Therefore, after two years of consolidation, this kind of an up-move is something to take notice of.

Of course, with the stock going from the most recent low of 0.17 to a high Friday of 0.50, this is not a good time to initiate positions in it. The reason for that is because if a person were to buy it now at Friday's closing price of 0.48, a "stop" would have to go below 0.17 (if your broker would even allow you to place a stop on a penny stock). That is clearly too wide a stop, and any other place simply wouldn't make sense.

So, the best course of action in this type of case is to practice patience and discipline, and watch for a pullback in MOSH that would allow for an entry point with a lot less risk. It is always cheaper to wait for the right setup to materialize before buying than to lose money unnecessarily because you simply couldn't control your emotions and had to buy a stock regardless of whether that was the right time for it. In trading, patience is definitely a virtue.

Tony Golan
Chief Technical Analyst

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