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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 Maui General Stores, Inc. (OTCBB: MAUG). MAUG is starting a strong new long-term up-trend. The stock is 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 the up-trend in MAUG is strong enough to be sustained over a long period of time.
MAUG was trendless for most of the past year. However, in mid-June, MAUG was trading just under 0.04 when it exploded to the upside all of a sudden. Within a week, MAUG hit a high of 0.18. This was a big percentage move in a short period of time. Normally, a move this strong up and away from the 200-day moving average indicates that this is likely to be a longer-term up-trend.
Since then, MAUG has pulled back slowly and mildly, and is now at the market-it-or-break-it point. If it is going to follow through on the up-move from mid to late June, this is the perfect time for turning back up and starting to march back up. If, on the other hand, MAUG continues to decline here and cannot turn back up in the next few days, its likelihood of resuming the up-trend and rallying to another new high will greatly diminished.
Whether or not MAUG turns back up from here or not is solely up to the stock. Traders of low-priced issues may want to keep an eye on MAUG in case it turns back up here and provides a high-probability entry point.
Tony Golan
Chief Technical Analyst
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