Small Cap Highlights
Secured Digital Applications Inc. (OTCBB: SDGL.OB)
For
Monday, November 5^th, 2007

Tony Golan
Chief Technical Analyst
StockProfit.com™

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This week I chose to highlight the chart of Secured Digital Applications Inc. (OTCBB: SDGL). For much of the past year, SDGL was trendless, trading sideways above and below the 200-day moving average but not sustaining movement in either direction for very long. However, all that changed in mid-September, when SDGL hit a low of 0.072 at the 200-day moving average and started trending higher. In the process, SDGL has gone above all the highs of the past year or so. In fact, the magnitude of the move in SDGL is so great in comparison with any of the moves in the past year, that we have to assume there is a powerful up-trend underway here.

This stock has just tripled in the past month and a half. Buying it here would be very risky. A much better time to buy any stock would be AFTER a correction, not before. Be patient and keep SDGL on your radar screen since its chart is suggesting the stock could continue to trend higher for some time.

Tony Golan
Chief Technical Analyst

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