Penny Stock Alerts - AKE, LF, ENAB, CLTH, ES, AMPL
Not a whole lot for today, so we’re combining our short-term picks with our long-term picks… and note that some of the short-term breakout trades aren’t even full-blown trades yet. We still want to see something else happen on their charts before we can say it’s safe to pull the trigger.
(Click on the company name/ticker to view a chart that isn’t displayed.)
- Penny Stock Picks (Longer-Term) -
Safety First Gib PPN (AKE)
Careful here, as volume is fairly thin. However, the trend has definitely taken a course for the better. MACD turned positive a few weeks ago, and we saw a wave of buying on Thursday - somebody wants in.
Interestingly (perhaps oddly), there’s no news for this stock….none. Maybe that’s a good thing.
LeapFrog Enterprises Inc. (LF)
Honestly, the recent uptrend is so nice, it’s a little scary. The volume surge over the last three days could be a blowoff top, even if a temporary one. Still, when eying where this thing was and where it’s pointed again now….geez it makes you salivate.
Here’s what wer’e thinking - don’t bother jumping in now. Let’s go ahead and and concede, wait for a pullback, and then revisit the chart. Ideally we’ll see support being made around the 20 day moving average line (blue), and then then bulls will dig in again. And, if support isn’t made, we’ll do nothing.
- Penny Stock Breakout Trades (Short-Term) -
Enable Holdings Inc. (ENAB)
This isn’t a trade yet… just something to watch going forward.
ENAB has been consolidating for a looooong time between 2 cents and 5 cents. During that time though, we’ve seen several major consolidation days. Eventually the sellers will run dry, and the buyers can get real traction. A move above resistance at 5 cents is the likely flag for a strong breakout.
Clean Tech Biofuels Inc. (CLTH)
We love the move; we hate the fact that there was no volume behind it. Therefore, this one is also not a trade yet…. just a notice of something to watch.
Frankly, we’d rather see Clean Tech shares reeled all the way in, regroup, and then restart with some better volume (and at a more reasonable pace). And now that somebody has tipped their hand, it’s likely.
There’s zero news behind the move… not even a rumor. Suspicious? You bet, though not necessarily in a bad way.
- Shorting Ideas (which are inherently short-term) -
We saw a major breakdown today… one that may be tough to undo now that so much damage has been done. We don’t recommend piling on ASAP though. Sit back and observe for a while, and go with the flow once the volatility eases up. We suspect the downtrend will get rolling then, but we’re not making that bet in the meantime.
Ampal-American Israel Corp. (AMPL)
The last few days aren’t anything we haven’t seen from AMPL’s chart before. The 20 day average line (thin, blue) is resistance. we saw a major pullback after an incredible surge, and an intermediate-term support line (thick, blue) is coming into play again. And, it’s that support line that’s keeping us on the fence for now.
In short, of Ampal slides under that support, we’ll view it as a bearish event. If it doesn’t, we’ll keep our powder dry. The one compelling part (for the bears) we see now that we haven’t seen with similar moves is strong selling volume.
This’ll be interesting either way.
That’s it for today, though be sure to check back early and often. We’ve always got more brewing.
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