Aug 27, 2010 10:04 AM PDT
The market managed to end Wednesday with a decent culling of its losses, though still in the red by the time the closing bell rang. The day did bear fruit though, in the form of three micro cap charts worth exploring.... Italian Oven, Inc. (PINK:IOVE), Bergio International, Inc. (OTC:BRGO), and Revenge Designs Inc., (PINK:RVGD). Here's a closer look; just bear in mind they may not all be bearish looks.
A little bad news for any owners of Revenge Designs Inc., (PINK:RVGD)... the ride may be over as of today.
The move from $0.0002 to today's peak of $0.0022 (about a 1000% gain) largely stemmed from the company's super car concept starting to attract some attention. Unfortunately, Revenge Designs Inc. can only run on hype for so long before the need for an actual product kicks in. The idea is great (the vehicle utilizes a hybrid V8), but there are still more answers than questions surround the business.
That fact landed squarely on a chart of RVGD today, with a significant reversal pattern accented by the heaviest volume we've seen since the hype/run began. Translation? There are now more people making exits than entries; I doubt it's a one-day phenomenon.
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As bad as things have been for Italian Oven, Inc. (PINK:IOVE) over the last three weeks, they could get much worse real soon. A major support line is on the verge of being snapped.
The chart says it all. IOVE is sitting on a 61.8% Fibonacci retracement line, with a head of bearish steam pushing it lower. The downtrend - which as been in place since the October 28th peak - has been light on volume over the last two weeks... the one positive comment I can make about Italian Oven shares.
Nevertheless, between momentum and poor corporate results, I'm still looking for Italian Oven to blow under $0.009 and head back to, well, essentially nothing. Once the floor is broken, such a dip could materialize in a matter of minutes for a float as small as the one IOVE has.
And finally, Bergio International, Inc. (OTC:BRGO) caught my attention not because of any particular chart pattern, but because it lacked a pattern. All we know is, since it started to trade as a bulletin board stock, it's moved from $0.39 to $0.84.
I know your next question - is Bergio International a buy? I don't know. Part of me likes the limited history we see with it, which may well mean it truly is an undiscovered opportunity just waiting to be pumped up. Another part of me is reminding my brain of so many other stocks like BRGO that fizzled right out of the gate.
Dilemma? Yep. For me and my speculative mind, I see this as a coin toss with a bigger reward than risk (because I can control my risk). So, though I wouldn't bet big, you could do a lot worse than taking a shot on Bergio International.
If any of you have any support DD on Bergio, feel free to chime in below.
If you'd like to know of any changes in our opinion of IOVE, RVGD, or BRGO (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.
