Small Cap Highlights
GraphOn Corporation (OTCBB: GOJO.OB)
For
Monday, December 10^th, 2007

Tony Golan
Chief Technical Analyst
StockProfit.com™

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This week I chose to highlight the chart of GraphOn Corporation (OTCBB: GOJO). For much of the past year, GOJO was in a non-trending mode, swinging above and below the 200-day moving average without sustaining movement in either direction for very long. However, all that changed in early November, when GOJO hit a low of 0.13 just below the 200-day moving average, turned back up, and started trending higher. On Thursday, it traded at a new 52-week high of 0.49. As a result, Relative Strength Differential (RSD), our proprietary indicator for selecting stocks in super-strong up-trends, is way above the 25% threshold line, indicating a very strong up-trend is in progress. The move up and away from the 200-day moving average is bigger in magnitude than any of the moves since December 2003, when it went from a similar low of 0.16 to a high of 1.49 in about three months.

With that said, this appears to be the initial stage a long-term up-trend in GOJO. Whether or not the stock will continue to go up depends to a large extent on the stock itself and on the strength (or lack of) that it will continue to show (or not, of course). The way in which a stock corrects compared to the way it went up tells a lot about whether or not the stock will be able to sustain its up-trend, which is why it's always best to buy a stock following a mild correction in a long-term up-trend. Since this stock has not had a correction yet, it's best to plug it into your watch list and keep an eye on it in case a low-risk, high-probability entry point does present itself down the road.

Tony Golan
Chief Technical Analyst

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