Small Cap Highlights
Capital Gold Corporation (OTCBB: CGLD.OB)
For
Thursday, November 15^th, 2007

Tony Golan
Chief Technical Analyst
StockProfit.com™

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For this mid-week Small-Cap Highlight I chose the chart of Capital Gold Corporation (OTCBB: CGLD). All the way back to the beginning of 2006, CGLD was non-trending, rallying above and below the 200-day moving average (the red line in the chart above). However, all that changed in mid- August, when CGLD hit a low of 0.34 just below the 200-day moving average and turned back up sharply. Since then, CGLD has been trending up sharply and has not stopped yet, making a high of 0.945 last week.

As the case is with all the stocks we highlight here, CGLD is in a strong up-trend and the up-trend is therefore much more likely to continue than to reverse. But only because an up-trend is more likely to continue than to reverse, it doesn't mean that investors can just jump in at any time just because "it's in an up-trend". All up-trends reverse eventually, and who knows when "eventually" is. CGLD has just completed a mild correction against the up-trend and turned back up after hitting a low of 0.658. Therefore, if it now closes back below 0.65, it will be an indication that the up-trend is reversing and turning back down, or, in other words, it would be used as an exit point.

As long as CGLD doesn't go below 0.658, however, it remains in an up-trend, more likely to continue higher than to reverse, and is worthy of keeping an eye on.

Tony Golan
Chief Technical Analyst

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