If you’ve not taken a look at a chart of micro cap stock Spicy Pickle Franchising Inc. (SPKL) lately, you may want to soon. SPKL shares have moved not only above their 20 day moving average line for the first time (effectively) since August, but they’re also above their 50 day moving average line for the first time since May. Both are good technical indications of a shift in the chart’s overall momentum. The best part of all, however, is that the recent rally has been built on rising bullish volume, or accumulation.

The chart itself tells the story better than I could ever describe it in words, so I’ll keep my comments to a minimum and proceed quickly to the image; the green (bullish) volume bars have been getting taller and more frequent since mid-December. The stock is also up 15% since then, which isn’t a monumental gain, but definitely a move in a new direction.

While it’s difficult to point at the volume trend and rally and say “that’s institutional buying” (which would be great), we can easily look at the chart and say there’s a lot more interest now. Perhaps we need to take the technical analysis hints at face value.

Take a look at the chart. I’ll continue to monitor how things unfold here, but interested value-seekers may not want to tarry with a potential breakout from this micro cap name.

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