|
|
|
home » small cap highlights
Tony Golan
Chief Technical Analyst
StockProfit.com™
 Zoom
This week I chose to highlight the chart of Basic Earth Science Systems, Inc. (OTCBB: BSIC). BSIC is reversing a long-term down-trend and starting a powerful new long-term up-trend. The stock is now making higher highs and higher lows 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 way above the 25% threshold line, indicating BSIC is gaining much faster than the S&P 500 and should therefore continue trending higher.
BSIC spent much of the past year in a long-term down-trend. However, in mid- March BSIC hit a low of 0.89 right and reversed direction back up. Last week, NEOP hit a new 2-year high of $3.04.
BSIC then pulled back and made a higher low of 1.77 last Wednesday. It should now hold above 1.77 and not go back below it. If BSIC does go back and trade below the 1.77 low from last week, its chances of re-starting the up-trend and going to new highs will greatly diminish.
If, on the other hand, BSIC is able to turn back up with a white candlestick and above-average, rising volume without going below 1.77, it will indicate it is re-starting the up-trend and will be likely to rally to new highs. Such a rally would indicate an intermediate-term buy signal.
The strong up-trend, the high RSD reading, and the fact that the stock already pulled back and made a higher low make this an intriguing stock, definitely worth keeping an eye on.
Tony Golan
Chief Technical Analyst
Disclaimer: Copyright© 2008 StockProfit™. All rights reserved. StockProfit™ is an independent electronic publication providing information on select public companies. StockProfit™ is not a registered investment advisor or broker-dealer. There is a risk of loss in all of trading. Past performance is no indication nor guarantee of future results. The information contained herein is believed to be accurate.This update is provided as an information service only, and the statements and opinions in this update should not be construed as an offer or solicitation to buy or sell any security. In no event shall StockProfit™ and/or its publisher, P.A. Relations or any of its employees or affiliates, be liable for any direct, incidental, consequential, indirect or punitive damages whatsoever arising out of the use of the Information, or for any errors or omissions in the content thereof, including, but not limited to, from any investment loss, damage or expense incurred by any investor resulting from the Information, or from the purchase or sale of any profiled company or any company which we make commentary. We recommend using good-'till-cancelled stop orders to minimize losses in the event of an adverse price movement. We have not been compensated by company(ies) mentioned above in any way. We do not hold any positions whatsoever in the above mentioned company(ies).
|
|
