KAT Exploration Inc today showed a sign of strength once again and bounced off the very critical .11 cents range showing renewed demand for this gold penny stock.

At this point it looks like KAT Exploration Inc has passed the test of holding key support at .11 cents.  I mentioned before about how important that level was to hold to keep the overall chart structure intact.

The good news now is that if KATX can get a breakout going topside out of this large descending wedge it could lead to a test of the highs near .24 cents and maybe beyond.

The volume ticked up nicely today as well.  The daily MACD histogram looks bullish and the WEEKLY MACD histogram will flash a buy signal if we can get a close above this weeks closing weekly high.  This would be a potentially very important weekly buy signal if it is confirmed next week.

This gold penny stock is a typical well behaving penny stock that has decent liquidity to trade just like regular stocks.  Still, it is important to consider that as of this writing KATX has not actually achieve a topside breakthrough of that red dotted down trend line.  This means that it still has important work to do to prove itself.

But so far so good.  KATX holders should be pleased that this penny stock has been able to hold .11 so far which was definitely not a given in this risky sector.

Pennystocks penny stocks first mentioned KATX way back at around 5 cents.  We also recently mentioned the gold and uranium penny stock LBSR at around 3 cents.  Clearly penny mining stocks are the place to be right now in the overall penny stock sector. . .

I am trying to think of anything bearish about the liberty star uranium corp chart today and based on all the signals I usually look at there is nothing I can find of major impact that is bearish right now.  The MACD potential sell signal in place as of yesterday failed yet again today and price of LBSR closed higher again above the recent new high.  This is yet another bullish sign.

RSI continues to push higher and if we move higher again tomorrow it could lead to an enormous blow off topside spike maybe even up 100% from today’s close.  I say this because there is a resistance line along the recent RSI consolidation and if that is broken topside it could lead price into a spike higher.

There was some supply that came into LBSR in the form of a topping tail today but we did not close under the .11 level which would have been much more bearish.

Looking at the penny stock chart above you can see that the price of LBSR is trending higher at a steeper slope marked by the higher angled trendlines.  I still stand by my earlier point that when news finally does come out for LBSR then it will move into a consolidation and cause at least a month of sideways base building. 

I also stand by my earlier point that there is a new resistance zone at about 13.5 to 14 cents.  That should mark some type of consolidation point.

Current the market capitalization of LBSR is about 52 million dollars. A price of .20 cents would put the market cap near 90 million which is quite pricey for any penny stock.  Taking new long positions in LBSR right now is not recommended unless very quick on the trigger finger.  Upside here could be maybe 50% or slightly more but those gains have the potential to be erased very quickly.

I am not bearish on LBSR but just trying to be realistic given the extension of the recent move.  Again, I have to emphasize that when news comes out it will likely be sold and market a topping point.  Never think that when news comes out price is going to go up another 100%.  It just doesn’t work that way.  It all depends however on how big the run is before the news.  In some cases a penny stock can be trading sideways for many months and then a news item will send it sharply higher.  But given that LBSR is already well into this run, one has to assume that a sell on the news scenario will develop.

Liberty Star Uranium Corp is the strongest penny stock I have ever seen in my life.  It is nothing short of astounding how strong this penny stock is.  Today a downward correction was fully retraced and LBSR actually closed up on the day.  Truly an amazing recovery today.

We first highlighted LBSR at .03 cents and continue to try to track its movements but admittedly it is starting to fool us more now because it is not following traditional signs of weakness from the indicators. 

Still, the MACD histogram is once again showing a bearish triple M pattern that would only be confirmed if we close below today’s low of .0771.  LBSR has met the measured move from the high tight flag that I mentioned in a previous post about LBSR.  In that post I pointed out that LBSR moved from .03 to .07 or a 4 cent move.  So adding 4 cents onto the top of the high tight flag would lead to a target of 10 or 11 cents which we did.

So the measured move was accomplished and this could be more evidence that we are going to move into a consolidation again. So how do we know if we are NOT ready to start consolidating going forward?  Very simply.  We need to take out the high of .111 cents on a closing basis.  If we do that then LBSR could explode higher again.  I view this as very unlikely for now but I have been wrong before in trying to pick a top too soon here.  But at least more evidence is piling up that we are near a consolidation phase.

The problem is that ‘news’ has not come out yet.  LBSR may want to trade right up into news which may come within the next 3 to 5 trading days (just a guess on our part).  I feel strongly that when and if news comes out, it will mark a turning point for the stock and the beginning of a consolidation period.  Why?  Because price usually moves before news and this penny stock has shown us that this is what it wants to do now.

If LBSR does somehow manage to trade higher again above .111 then there is a stronger previous resistance range at .12 to .14 cents which should stop this penny stock and move it into a consolidation.  I doubt very highly that we will be able to break above .12 to .14 immediately assuming we even get there.

(more…)

Today LBSR hit a higher high above last Friday’s high price swing but volume contracted dramatically.  This is a short term bearish sign because we tested last Friday’s high and then closed under it.  I also see a bearish candlestick piercing pattern where price retraced 50 percent into last Friday’s candlestick.

There is also a bearish divergence between price and RSI.  In addition to that the price of LBSR has moved to the expected duration after the bullish falling flag formation that occurred at the previous consolidation in the .05 to .06 range.

Don’t get me wrong, LBSR is extremely strong but at sometime this stock needs to take a breather and start to build more sideways cause again.  Today’s action seems to be suggesting that this process may begin now or at the latest sometime this week.

It does appear that LBSR is trying to trade into a news item.  Once the news item is released, there ought to be a classic ‘sell the news’ type situation as is usually the case.

So far LBSR is an outstanding penny stock and a sideways consolidation will be very welcome news as it could make a base suitable for much higher prices ahead.

When a penny stock starts trading up in a straight line it usually seems like it will keep doing so indefinitely.  I have been there before.  But at some point the stock will start a consolidation which can sometimes take several months to build.

LBSR is an extremely strong penny stock.  The consolidation we were looking for did not happen and LBSR decided to not waste any time and bust right above .07 in a very strong follow on breakout above resistance.

This is by far one of the strongest penny stocks I have ever seen.  It now appears that the short and brief consolidation that occurred during the last 5 trading days was just a bullish flag pattern.  This could mean that we have another two days up perhaps moving above the .10 range.   Straight line moves into a flag pattern can lead to another straight line move equal to the first one.  So the first move was from .03 to .07, a total of .04 pennies.  So a breakout from .07 leads to a follow on move of .11 cents as a target.   So we could be targeting .11 in the days ahead before LBSR tops out into a much longer consolidation.  At some point we will, but price has to blow itself out.

It is going to be interesting to see if .11 would mark the intermediate term top.

This is the kind of penny stock action that you want to see.  LBSR could have easily decided to go into a longer consolidation right now but instead it chose to blast higher without waiting.  This is a sign of strength and it has to be respected.  These are the types of penny stocks that I always try to find because they make it a lot easier to stay with the trend.

There is a resistance zone at .08 cents so it will be key tomorrow to get immediate follow through and another strong candle or there could still be a risk of a return back down.

But for now strength has to be presumed in LBSR.  I will post up another updated chart tomorrow. . .

TRANS GLOBAL GRP is the sub penny stock we briefly mentioned last week.  Today it broken down badly and on high volume below what we defined as a critical holding point at .0006 or higher.

TGGI was not able to hold up trend line support as we said is must do in order for it to remain bullish and get a new leg higher.

We are making this post on TGGI not to come off sounding like a wise owl or ‘I told you so’.  Observing why and where penny stocks fail is just as important as feeling great about penny stock moves that break out and are successful.  If we do not take the time to go over what has failed and WHY in penny stock land then how on earth is any one going to learn anything ?

Most other penny stock sites just focus on the winners.   They do not take the time to look at in depth why certain penny stocks failed and the REASON WHY they failed.  Instead they just keep quite about them and hope you will forget.

Here at penny stocks penny stocks dot com we take a different approach.  We think it is important to look at the winners and the losers as  means to fine tune timing techniques.  It is just like anything else in life.  If you don’t learn from your mistakes then how will you get any better at something in the future ?

So getting back to TGGI.  It is important to point out that what TGGI should have done near the up trend line of support was show us a very quick and convincing upward reaction that showed a sign of strength, a reversal candlestick formation or at least some sign that it was not interested in lower prices.

It was not able to show us or prove itself and thus is now headed into the recycle bin.  Notably today’s break down was also on quite heavy volume.  Also notable is that RSI was not able to hold 50 level and is now into more bearish territory below the 50 range.

The best attitude to take with all penny stocks is that they MUST PROVE THEMSELVES to you.  They must really show you with almost no doubt that they have inner strength and will conform to your supportive rules.  Most of them don’t conform and end up turning out like TGGI.  But some of them do and those are the ones where it is best to focus all energy in our opinion. . .

So lets remember TGGI as a useful penny stock lesson if you will.  The more we can learn about the “fail or pass” behavior of these stocks the better off we are . . .

Liberty Star Uranium and Metals Corp today showed a very strong upward reaction right from the get go which is a bullish sign that LBSR wants to be accumulated and eventually trade much higher.  We predicted that LBSR would trade higher today and it has, so what now ?

The volume on today’s upward rally was quite lacking with conviction.  To a certain degree today’s rally was sort of an automatic rally after yesterday’s 14% drop.  The fact remains that LBSR is still trading now within a wide trading range of .07 as the high and .044 as the low.

We still think it is in consolidation mode given today’s light volume.  It may trickle higher a bit more but we feel that it will eventually come back down to test .044 at a minimum with a preferred bias towards a filling of the .038 gap.

Right now on the 15 minute penny stock price chart (it is right now 1 hour before the close today) it appears that the penny stock LBSR is trading higher into a rising wedge formation which has just now slightly been broken.  How this pattern looks by the close today remains to be seen but this rising wedge seems to support the theory of another trip down either later this week or early next week.

Not shown in the chart below is the 15 minute MACD histogram which seems to b confirming the bearish potential of this rising wedge formation as it is showing a bearish divergence between the two most recent peaks of the Histogram.

The penny stock charts never lie.  They always help to allow one to keep sanity in the crazy wild moves of the penny stock markets.

Rising wedges have targets that go back down to the start of the Rising wedge formation which in this case could be near .044.  But we think it will undercut that number to .038.  Still, prices between .038 and .044 seem like good accumulation points to us.

Despite our forecast that LBSR will remain in this near term trading range and still consolidate down somewhat, we will be the first to admit that LBSR will trade much higher than .07 if it somehow manages to thrust higher above .07 this week.  This is a very low probability scenario right now, but flexibility is always key.

So the correction continues in the penny stock LBSR building eventual cause for the next big move up.  You might have noticed that volume plays a key role in our interpretation of these penny stock charts.  Volume is the energy or force which moves markets and any individual penny stock.  When you see a big price move but very light volume relative to what has happened in the past, then you need to be skeptical about the move in relation to where it is trading within the overall pattern.

It can be confusing at times, but here at penny stocks penny stocks we try to map out the rough seas of penny stock land. . .

Liberty Star Uranium & Metals Corp today corrected as we had predicted from our previous analysis.  So far we have nailed the breakout from above the .03 range and identified the short term top at the .07 range.  These were clear signals shown from the candlestick patterns and other indicators we follow.

Today we saw about a 14% drop which is typical in penny stock land.  The key about today was that volume was relatively very light which is a very bullish sign.  We still think that the gap at .038 will eventually get filled and may serve as a spike low of final low to form this short term trading range.

The MACD histogram did a confirmed sell signal today and so a trading range and consolidation is to be expected now. 

Tomorrow we may shoot back up to try to take the highs out again but price should then once again fall back down (eventually) to test today’s low.  This process may take about a week or so.

The preferred scenario is for LBSR to fall again tomorrow to fill the .038 gap on a spike low and then rally by end of day in a dramatic reversal that sets the stage for a nice big price advance Thursday and Friday of this week.  We suspect however that tomorrow will be an up day that retraces some of today’s decline and then leads to another drop into the end of this week.

The analysis does get a little bit more complicated now because we are in a midst of a large trading range.  The swings will be less predictable.  There will be some buyers near the top who will want to get out if price makes another run up there.

So there are still interesting dynamics here in this penny stock.  And we still feel that it should be accumulated on a gap fill at .038 and as long as volume and price parameters meet our conditions of strength.

You will not see this level of depth on 99% of other penny stock sites.  Only penny stocks penny stocks dot come goes into this level of depth and detail into penny stock moves. . .

Here is a list of penny stocks today that had a 150% volume surge and their corresponding symbols.  This list of penny stocks is simply a look at what happened in the penny stock universe today and have not each been individually evaluated.

For our thoughts and charts of the latest key movers please visit the penny stocks penny stocks homepage.

TRANS GLOBAL GRP IN (Public, PINK:TGGI) is in a do or die scenario.  This sub penny stock has hit the lower limits of an up trend line on the semi log chart that absolutely must hold tomorrow otherwise TGGI will head to the recycle bin.

This is about as clear as it ever gets in penny stock land.  TGGI must hold .0006 level tomorrow otherwise it risks a break of this uptrend.  The good thing I can say about this sub penny stock chart right now is that price has so far held support and today’s drop was on relatively much lighter volume compared to weeks earlier.

Also notable on the chart is that the RSI (relative strength index) is just perched up on the midpoint 50 level.  This is bullish as long as we STAY above the 50 mid point level.  A break down in price tomorrow will send the RSI below 50 which will confirm the bearish signal.

Overall I have to say that the whole volume pattern is quite bullish looking. I have not seen any huge surges in volume on any of the down spikes in price.  This could mean we will hold tomorrow and rest of this week.  But I can only speculate.  Either we do or we don’t.  Don’t second guess it.  Just let the stock do the work of telling us.

The huge volume surge is what makes this sub penny stock interesting.  But it will need to start surging again along with holding .0006 to keep this uptrend moving.

When penny stocks die, they usually do it by breaking up trend line support and then volume dies as well.  It will be interesting to see how this one shakes out in the final analysis. . .