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home » small cap highlights
Tony Golan
Chief Technical Analyst
StockProfit.com™
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This week I chose to highlight the chart of Genelink Inc. (OTCBB: GNLK). GNLK is starting a strong 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 well above the 25% threshold line, indicating GNLK is very strong and should therefore continue outperforming the S&P 500.
GNLK spent much of the past year mired in a long-term sideways trend, swinging above and below a flat 200-day moving average. However, in mid-May, GNLK hit a low of 0.11 and started trending up. Last Thursday and Friday, GNLK hit a new high of 0.525.
The strength of the up-trend in GNLK indicates that when the stock does correct, the correction will likely end above the most recent low of 0.20 made on June 9th, and be followed by a turn back up to resume the up-trend, continuing the pattern of higher lows and higher highs that makes an up-trend.
On the other hand, if GNLK continues declining (when it does pull back) and goes below the June 9th low of 0.20, it will most likely signal the end of the up-trend and the stock will then not be likely to go to new highs anymore.
Keep an eye on GNLK because it could turn into a big winner. Whether it does or doesn't depends, as usual, on the way the stock behaves when it finally does pull back.
Tony Golan
Chief Technical Analyst
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