Aug 27, 2010 10:04 AM PDT
We were mulling BMB Munai Inc. (KAZ) a few days ago when the market was buzzing about the stock, but the stock wasn't actually going anywhere or doing anything. Now things have changed though - and there may be a trade packed in there.
BMB Munai shares have broken above a short-term ceiling around $0.97 cents. But wait a minute... didn't KAZ do the same thing in late September? Yes, it sure did, but it's different this time. This time there's actually some buying volume, and no selling resistance. In September, the sellers still outnumbered the buyers. Thus, the rally effort was doomed.
Considering BMB Munai was trading around $6.00 just a year ago, the recovery potential here is massive. We'll start conservatively though, and just project KAZ to head back up to the more recent ceiling around $1.91.
We pointed out that Palatin Technologies Inc. (PTN) made a breakout move a few days ago, only to see the stock fall back to the support line of the wedge we were eyeing. However, we want to reiterate the bullish call now.
In taking a look at the updated chart, the initial reason we likes PTN are still in place... the resistance line of the triangle is still broken, and the support side is still intact. In fact, the reason our interest in Palatin Technologies is because that support line has been retested, and is pushing the stock upward again.
You'll also notice the selling volume on the way down was minimal, but the slightest of upswings from Palatin Technologies gathered a growing degree of volume. PTN is still in breakout mode, but at a much better price than when we first called it.
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Before anybody gets too excited about today's big gain from Orsus Xelent Technologies Inc. (ORS), you should know the stock's rally was suspiciously halted at what's been a major ceiling for it... around the $1.116 area. If history repeats itself, ORS will head sharply lower before heading higher again.
The chart below tells the whole story for Orsus Xelent Technologies. The lows are getting higher, which is good, but the highs aren't getting higher, which is bad. That said, it's not like these surges from ORS are making it easy - nobody likes to chase volatility.
Eventually, Orsus Xelent will break that resistance line and make good on the rebound effort. Today may not be the best day to stake your claim though. Let ORS build a base closer to $1.00 (but above $0.80, where this launch ultimately started) first.
Finally, I want to look at RealNetworks Inc. (RNWK), not because it's a new trading idea, but because it's an old one I know many of you are in because of our recommendation from June 2nd.
Though the last two months appear to be the beginning of a breakout move for RealNetworks, I would discourage you from jumping on now. I do think the bigger-picture trend has turned decidedly bullish for RNWK, but history has taught is (well, me anyway) to expect a lot of ebb and flow, like we've seen since March.
Our subscribers are up about 61% since our entry on this trade, but don't think for a minute it wasn't a nerve-racking start... and they've got a profit cushion to work with. Newcomers to RealNetworks will be stepping it at a point where the stock is very overbought, and probably due for a brief dip. Longer-term, a massive amount of volume inflow tells me there's a paradigm shift in play... to the upside.
All that being said, the key to timing any entry of RNWK is still - I feel - using the trend lines that have been established over the last several months. There are several though, so be aware of all of them.
If you'd like to know of any changes in our opinion of RNWK, KAZ, PTN, or ORS (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered 2 to 3 times per week.
