Small Cap Highlights
EnDevCo, Inc. (OTCBB: ENDE.OB)
For
Monday, February 25^th, 2008

Tony Golan
Chief Technical Analyst
StockProfit.com™

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This week I chose to highlight the chart of EnDevCo, Inc. (OTCBB: ENDE). ENDE is starting a powerful new long-term up-trend. The stock is making higher highs and higher lows and is now above a rising 200-day moving average (the red line on the chart above). Relative Strength Differential (RSD), our proprietary indicator for selecting stock in super-strong up-trends, is well above the 25% threshold line, confirming the strength of the up-trend in ENEI and indicating the stock is therefore likely to continue to perform.

ENDE spent much of the past year in a quiet sideways trend, swinging above and below the 200-day moving average without sustaining movement in either direction for very long. However, in late January, ENDE gapped-up, opened at 0.034, and has been trending up ever since. Last Friday, ENDE hit a new high of 0.104.

So, the up-trend in ENEI indicates it is very strong, but every stock looks strong when it's going up. If the stock just about doubled in the last three weeks, and it will take a decline of just about 50% from here before you find out you're wrong, it means this is not the right time to enter this stock.

Just like the stock featured in this week's "Chart of the Week" section, ENDE has gone straight up without any pullbacks. Therefore, this is not a good place to buy it, because if it starts to go down, we don't know what price level is has to decline below to indicate we're wrong

Therefore, the much better course of action is to wait for the pullback and evaluate it then. If ENDE comes crashing down, it will be much less likely to rally to new highs, and it will be best to avoid it at that point. If, on the other hand, ENDE corrects mildly and slowly against the trend, it will be much more likely to rally to new highs from there, thereby creating a buying opportunity.

So, for now, keep ENDE on your watchlist because this is one of the strongest performers on the OTCBB market and is likely to go higher yet.

Tony Golan
Chief Technical Analyst

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