After the market closed last Thursday I mentioned how the Voyant International’s (VOYT) stock looked prime to reverse higher after retesting a key 61.8% retracement line (at 15 cents). Well, we did indeed see this small cap stock move higher on Friday. Today we’re seeing even more upside, this time with higher volume. That accumulation is still on the low side overall, but it’s enough to get the stock moving.

I’m not overly surprised either. As you can see for yourself, the degree of bearish volume was shrinking as the stock peeled back from the peak of 32 cents. I have to think that was profit-taking from those folks who don’t see the longer-term picture here (which is fine). Now with all the big swings out of the way, we can really start to hone in on a valuation. (For more on the volatility-versus-valuation theme, be sure to review Thursday’s blog.)

Anyway, just wanted to point out this small cap name may be gearing up for the second round - and maybe a breakout move.

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Excellent. I was worried that we’d see this small cap stock surge out of reach right out of the gate, but Voyant (VOYT) opened where it closed on Tuesday…at 12 cents. We are seeing a good deal of buying here, but I’ve yet to see a trade over 14 cents. In other words, this stock looks safe to venture into if you were worried about a lot of news-based volatility.

It looks like it’s going to be a high volume day as well. 244,000 shares have already traded hands, and we’re just nine minutes into the trading day. I expect today to be one of the biggest days ever for the stock in terms of volume, which should get the attention of anybody who may have missed the news (maybe some institutions too).

More importantly, I think this is going to jump-start the stock. I’m glad all of you were able to get in under 14 cents. Let’s just sit back and enjoy the ride.

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Though we’ve only got a couple of trading days under our belt since we mentioned bulletin board stock Voyant International (VOYT), they’ve been a good two days. Shares closed at 10 cents on Thursday - the day we issued our company profile in the newsletter. As of right now, they’re at 12.5 cents…up 25% since our first look.

Even more compelling is the volume. We’re seeing a significant amount of buying now.

The short-term line in the sand seems to be 13.5 cents. We saw VOYT peak there yesterday, not to mention peaking at that line a couple other times earlier in the year. If the stock can break past that resistance, I really like the odds of a rally. I’d be accumulating on that breakout.

On the chart below you see a peak around 38 cents. What you don’t see is the peak of 76 cents from the middle of last year. Those are my short-term and longer-term mental goals.

Are they acheivable? I think so, though we’re not going to put VOYT in a full-blown ‘trade’ framework just yet. All I know is this company’s market cap is a mere $14 million, and they’re looking at a handful of multi-million dollar deals.

In the meantime, I think this bulletin board pick is starting to get traction, reflecting the underlying company’s potential.  

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