Penny Stocks Penny Stocks

One Penny Stock and a Dream

I have identified what I believe will be the next 10 Bagger potential mining penny stock.  Of course this is not guaranteed at all, it is all about probabilities.  But I know a good penny stock chart when I see one ( I have followed penny stocks and technical analysis for at least 10 years) and you just have to look at some previous posts here to see some penny stock picks I have identified.  I have picked some mining penny stocks that have returned between 500 to 1000%.  In the past I have traded a mere $600 to 70K entirely with penny stocks only and most of the gains were achieved with the use of mining penny stocks.

A good penny stock setup is all about the technical analysis and being in the right sector.  Right now the mining penny stock sector is superb and probably one of the best sectors any penny stock trader can focus on.

This mining penny stock in my opinion is deal for accumulating going forward and as indicated in the first paragraph has high odds of being a multi bagger mover, maybe 10 fold or more.

But again this mining penny stock pick is absolutely NOT guaranteed to work out in any way.  It all comes down to the ability to read a price chart properly and then make a decision if it is the best penny play out there or not.  If it is, then go with it and sit on it for a while and let it evolve.  If the analysis was correct then it will evolve correctly, and there will be signs of that.  If the analysis was incorrect then one has to know where it turns into a ‘wrong pick’.

I will tell you that I am currently long this penny mining stock and plan to keep adding more as the year progresses.

I was not and am not paid or compensated in any way with regards to this penny mining stock.

Unfortunately I am not going to reveal this penny stock setup in this post.  I have some bills to pay and the costs associated with running this site are starting to add up. 

However, I am willing to offer the following details on this high potential 10 Bagger Penny Mining stock for $57 with the following details:

• The penny stock symbol
• A two page PDF report (or some more pages, not quite sure of the full length yet) with some charts and textual content explaining my rational for WHY I feel I have found a 10 Bagger Penny Mining Stock.
• One or two more PDF updated reports in the future depending on how things evolve.  There will be a special members only section of the site here where you will be able to access these additional reports.

I am hoping I can figure out how to configure this site properly before the end of this week, maybe sooner,  so that I can easily offer the above named options for you.

I am working on some technical aspects of the site and need to be sure it is working properly before I can offer this…

Stay tuned…

P.S. Again, this is what I consider to be a high confidence penny mining stock setup.  It is not guaranteed and past performance of my picks is not indicative of the same future performance.  Do own responsible due diligence.

SSOL had an ‘E’ added to its stock symbol today because it was late in filing its recent SEC documentation.  The stock sold off big time, down almost 40% today.  In a previous post I indicated that SSOL was worth watching but that it needed to prove itself.

This penny stock looked like it was warming up for another huge upside move and the creation of a handle of a cup and handle chart.  I thought it might start to move today and break the recent down trend line of prices.  But then this late filing issue came up and it looks like people panicked out of the stock.

I don’t know what the issue is with them filing late but it is usually not a very good sign and a sign of irresponsibility or sloppy management.  I have to admit that I was somewhat skeptical how they issued almost every single day a new PR on a new contract that they won.  It just seemed too scripted.

Anyway, SSOL looks completely broken now and any potential cup and handle pattern is now completely invalid.

Some penny stocks setups just do not work out no matter how perfect they may seem at a certain point in time.  One always has to keep an eye on key levels and let the stock prove itself.  Also watch for important price candlestick reversal patterns and do not hang on too long if they are warning of an important reversal.

There is not such thing as ‘trust’ in penny stock land.  Just ‘guarded optimism’.

It could very well be that SSOL recovers next week but for now I think the damage is bad enough.  I do not think it will be able to recover from current levels.  It will probably get some kind of upside reaction rally but now the .0166 level is heavy resistance.

I prefer to see penny stocks hold their shallow retracements and then get new follow on moves to the upside.  SSOL failed in that regard badly today.

SSOL Sunvalley Solar Inc may be in the process of forming a cup and handle formation.  Solar penny stocks and green penny stocks are benefitting from currently favorable momentum.

SSOL made a nice move from about .005 to .03 range but then started consolidating after hitting a previous important swing high.  Sunvalley Solar Inc was releasing a barrage of press releases about new ‘solar installation contracts’ almost every day for 10 straight days and it pushed the stock price up substantially.  I have to admit that I thought it somewhat odd that they were releasing press releases seeming every single day for so many days in a row.  These contracts must have been secured well ahead of time and they must have just decided to release them in a barrage like that to give the stock price maximum effect.  That is my contention.

So now the ‘solar installation contracts’ press releases have dried up for now and they probably have quite a bit of work on their hands getting them all installed properly.

The website of Sun Valley Solar looks quite professional but the one thing I will never quite understand is why these micro cap companies do not place directly on their homepage a very large and obvious ‘ORDER NOW’ button or ‘request more info’ or something like that.  Instead one has to dig through all kinds of menus to get the order process going.  They do have a button which states ‘how to get started’ which seems to be on the right track.

This solar penny stock is still ‘conditional’ to me in that we do not really have any confirmation that it will evolve into a cup and handle pattern.  But from the chart above you can see that we have a cup and handle neckline (green dotted line) and the current retracement is so far at a 50% fibonnaci retracement level of the entire advance.

SSOL may still drift down further and that remains the risk here.  SSOL needs to show a sign of strength above the solid white down trend line to give a first sign that it wants to evolve the ‘handle’ of this potential cup and handle pattern.

Ideally SSOL will not retrace down any lower than .015 level.  I would view that as maximum down side in order to keep a chance this could evolve bullishly again.

The moment of truth for any penny stock is the retracement after the initial big move.  If it has the right qualities then it will find a way to initiate a third rally upwards again.  So far SSOL has not given this indication.  Penny stocks penny stocks dot com will be watching SSOL closely and provide further updates as warranted.

Evcarco Inc has turned into a MONSTER green  penny stock.  Here at penny stockspennystocks.com we mentioned EVCA on Tuesday February 8th, 2011 at .023 cents.  At the time we were not giving it a full endorsement, just indicating that it should be on the radar screen.

We also indicated that EVCA could possibly become a good better risk reward buy if it pulled back to the .016 range as that was a previous supportive shelf.  EVCA was never able to achieve that pull back and instead the next day formed a doji candlestick which is essentially a pausing pattern.  The next day this doji was fully engulfed bullishly.

Volume throughout the entire previous 10 days move has been solid and steady.  The solar and green energy sectors are also generally speaking in a good momentum right now and we are seeing many green energy stocks behaving quite well (not just green energy penny stocks).

EVCA may pull back from today onwards as it is right under an important resistance zone under .10 cents.  Having said that, EVCA does have a small float by penny stock standards, so any pull back from here could be a short affair.  If today EVCA can hold .07 range then it may have a bit more to go, but for now I still think .10 could serve as a ceiling for this stock.

But the move from .023 to .09 or 291% was clearly an outstanding upside move.

Here at penny stocks penny stocks we have picked some huge winners, but you will also notice that our frequency of picks is very light.  Most other penny stocks sites, message boards and other services throw a huge QUANTITY of penny stock symbols in your face week to week.  But we believe that QUALITY  if much more preferred in this sector.

Any penny stock site that throws quantity out at you can always brag that they picked some huge winners… Well guess what, I can throw 100 penny stock symbols at you this week alone and I can almost guarantee you that I can then brag that I gave you one or two 100% upside winners!

I would much rather hear from a penny stock service that delivers to me 1 to 5 picks per YEAR that have a much higher probability of succeeding than one that delivers to me 1 to 5 thousand picks per year.  It is all about focus and the ability to know and see a good pattern when it presents itself.

Timing is extremely important in the penny stock sector because this is the type of sector where if your timing is slightly off, then you will have to go through a possible 10 to 50% draw down before the position can (possibly) move into profitability. 

So in summary, focus on penny stock sites that focus on technical analysis, focus on quality and are patient enough to deliver quality over quantity…  The ‘fundamental’ aspects are penny stocks are also important but much less so than technical analysis.  The ideal situation is to weight each factor appropriately enough for the perfect ‘mix’ that makes for a superb penny stock setup.

EVCA EVCARCO INC is a penny stock that is getting a lot of current real time interest and is currently trading at .022 cents  There has been a surge in volume over the last 10 trading days which is always something I like to see especially when on a relative basis it represents an increase over over previous average volumes.

I briefly looked at the website of EVCA and I have to say that it is one of the nicest looking penny stock websites I have ever seen.  Most of the time penny stock company websites leave something to be desired, but this one really fits the bill for me.

EVCARCO INC is a low float green energy penny stock with 83 million shares outstanding according to otcmarkets.com   This to me is in the very low range for a penny stock and is a good sign.

Apparently the stock is getting some good momentum due to a senator’s proposal of a $7500 somewhat instant rebate for electric car vehicle purchases.

From a trading perspective we already missed the boat on EVCA.  The real buy was yesterday at the close or at the open today.  The stock is already up 85% today however it is still important to see how it closes.

But there exists potential that this could turn into a multi day runner.  I do not view it as a buy right now.  It is simply worth putting on the radar in my opinion.

For Evcarco Inc stock to keep extreme strength I would say that tomorrow 2/9/2011 it needs to hold .0144 as the low and then try to develop some type of reversal candlestick.  It may follow through quickly to the upside tomorrow, but we are in sort of an IF THEN type scenario with EVCA right now since it has already made a big move today.

The IF THEN conditional depends on how we close today and then how we open tomorrow and if .0144 is able to be held strongly.  These are the important conditions for this potential setup in EVCA right now.

As an aside, the booming oil price (over the longer term) should help to keep the spot light on green energy penny stocks.  We have seen some huge moves in the green energy sector in the past and some of the greatest moves were during periods were the oil price was skyrocketing.  Why?  Because it creates the sense that an alternative is needed and helps to push more demand for green energy products and makes them more cost competitive.

I have recently been studying the gold, uranium and copper mining penny stock Liberty Star Uranium & Metals Corp again.  I had extensive coverage of LBSR many moons ago which you can view in the archives here.  At that time I had given LBSR a penny stocks penny stocks rating of 1, our highest rating.

Now I see that LBSR selling has dissipated and LBSR has formed a supportive range above .04.

I see now that LBSR will make a move back up to the old highs at .19 and now Liberty Star Uranium & Metals Corp is on high alert again as the trading pattern begins to emerge again.

This next leg up in price should be quite amazing because it would be an elliott wave 3 up which is usually the longest and strongest wave up in price.

The recent multi month decline showed a clear pattern of downward price losing its momentum and selling volume rapidly losing force.

I have some very long term charts (going back to the year 2000) of LBSR that more or less prove that we should be able to exceed .19 cents.  I will have those charts forthcoming in the days ahead.

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Supatcha Resources Inc or SAEI appears to be an outstanding gold mining penny stock candidate as we finish up the Thanksgiving week and head into December 2010.  The winter time frame and into new year is usually a good time for huge penny stock moves.

Supatcha Resources Inc  has a very low total authorized and outstanding share count and a low trading float as well.  The trading float is near 30 million which is extremely low for any penny stock trading under .20 cents.  The company has announced a recent share buy back as well.  The recent surge in the gold price certainly paints a backdrop that is favorable as well.  Certainly there is not a 1 to 1 correlation between the gold price movement and the share price of gold penny mining stocks, but it is still a helpful speculative back drop.

SAEI has gold mining properties in the Ukraine, has recently released some drill results there and apparently is due to release some proven and probable reserve numbers near the December 5, 2010 time frame.

If you have read previous posts here before then you will know that I tend to favor the technical outlook versus the fundamental outlook for any stock, whether it is a penny stock or a blue chip stock.  It does not matter to me.  The technical for me has always been the best compass in a sea of rogue waves and market manipulation.

In mid October 2010 SAEI went from a low of about .005 to a high of about .20 CENTS equating to roughly 40 TIMES ones trading capital assuming one had bought at the low and sold at the high.  It also accomplished this in a mere 10 trading days.

This type of massive percent advance combined with the minimum time frame seems to confirm the tight float SAEI works with.

One of the most basic lessons of stock market movement is the A —- B —- C up formation and conversely the A — B —- C  down formation.   The ABC up formation describes a very common market advancing mechanism that is similar to the first three waves of an elliott wave up move.

Essentially what you see is a large and fast impulse wave move UP on heavy volume.  THEN you see a natural retracement of that first leg up as there will always be sellers who want to take at least some profits.  But the real gold is in determining if the penny stock then has enough strong supply demand relationship to halt its decline after the B down leg move and then transfer into a follow on C leg up move which should exceed the peak of the A move up.

This ABC up move is in essence where most of the money is made in penny stocks and that astute observers who can catch them early enough.

Of course there are other patterns at work in penny stocks as well. The cup and handle is a very popular pattern in penny stocks just as it is in other big board stocks.  I am speculating right now that Supatcha Resources Inc is forming a cup and handle pattern and is in the process of finishing the formation of the handle of the cup which would be consistent with possible news in 1 weeks time.

The cup and handle simply describes a pattern where previous owners at the supply range of .20 cents wanted to get their money back and thus caused a selling wave.  But since this is a penny stock we are dealing with these selling waves can seem very large, but that just comes with the territory here.

I have studied the Level II market action on SAEI today the day after the Thanksgiving holiday and see that in the early part of the morning showed very strong bid support in the .125 range.  The big support was about 5 levels deep and there seems to be some small upticks now as well.

In the early part of the day today SAEI also showed a double inside day which basically means that the high of today and the low of today was successively lower than the high and low of the previous two range bars.  This describes a situation of the stock ‘coiling up’ and ready for a big move.

SAEI can move very fast in both directions.  But at this point I have to give SAEI a penny stocks penny stocks rating of 1 as long as it can show a confident close above the .145 range.  I don’t know whether that could happen today, but possibly by next week some time.

The recent 3 days action could be what is known as a ‘running correction’ where the stock is simply too strong to get a real meaningful pullback because the float is in such tight hands.  Still, the requirement is for a move and close above .145 preferably by early next week.

Liberty Star Uranium and Metals Corp has broken any chances of maintaining a strong uptrend.  LBSR really needed to hold .08 to give it a good chance of a further consolidation and eventual new leg higher.

It appears as though the very high volume price swing right from the high of .20 was too much damage for the stock. 

From this point forward I suspect that LBSR is going to drift lower, possible back to the breakout point of .03.  That may take some time however.

The only thing that would turn LBSR bullish again is if by some miracle it is able to break back above .08 again, preferably very soon.  This is an extremely unlikely scenario given the current damage the stock has taken.

Is there a lesson here?

Any time a penny stock declines from a spike high on extremely high volume one has to be open minded to the fact that it created permanent damage to the stock.

A similar situation occurred in the penny stock KATX and eventually also led to a break down.  But the break down in KATX took much longer to occur.