CytoSorbents Corporation CTSO may be about to break out from a symmetrical triangle formation.  I thought it was worth a short mention.  CytoSorbents Corporation trades on the OTC BB exchange (this is usually a positive point I sometimes give weight to as I consider stocks trading on the OTC BB of generally higher stature then those that trade on the pinksheet exchanges) and appears to be a biotech penny stock that has a blood purification technology.

I happened to have it on my watch list and have been eyeing it now and then but noticed today that it appears to be as about compressed as it will ever be right into the apex of a somewhat large 1 month symmetrical triangle formation.

It looks like north of .095 is where CTSO needs to be to get a run going.  The symmetrical triangle has possible target implication of about .12 which would be about 20% from here.

The risk is that the price of CTSO has travelled all the way into the apex of the symmetrical triangle which makes it less reliable.

There has also been somewhat of a volume surge in this penny stock during the last 4 days but price has barely moved.

This stock has shown that it has the ability to move a little bit in the past.  It went from .06 cents to .40 cents in 2009 after a previous long consolidation.

Presently the stock has been trading in a long down trending channel and the apex of this triangle meets pretty close to where the down trending channel line sits.

Finally I should say that I have noticed in recent days that many penny stocks are starting to come alive.  Perhaps it has to do with the broad market speculative recovery from its mini bear market, or perhaps it has to do with penny stock investors anticipating the beginning of penny stock trading season.

I was looking through my penny stock scans today and Liberty Star Uranium & Metals Corp came up.  I was shocked when I looked at the chart of this penny stock because of the beautiful advance it made from a long base.  Needless to say I am disappointed to have missed that huge from from .003 to .03.  That is like a regular stock moving from 3 to 30 dollars!  A very nice move.

But now this uranium penny stock has consolidated in a sideways triangle and may be getting ready to advance again.  Today it moved nicely but I suspect that it is not entirely ready for prime time yet.

The larger structure of this uranium penny stock is indeed quite attractive.  Despite missing the move from .003 to .03, there may be a lot more to come.

It appears that a large part of the reason for the move in this stock was a jump higher in the price of uranium.  Remember a few years ago the price of uranium shot higher from 8 to $160 per pound of uranium.  It was one of the most unbelievable commodity advances the world has ever seen.

I used to have a price chart of the spot uranium price and will look into plotting it again with indicators so that I can get an idea of what may unfold with the uranium price.  It would be nice to see another ‘uranium mania’ of sorts to help this stock move along.

Anyway the nice thing about Liberty Star Uranium and Metals Corp is the longer term chart since late 1998.  The chart shows a long base followed by the recent massive rise on massive volume.  That is a very good sign in terms of the overall structure of the chart.

It could be argued that this uranium penny stock has formed a massive cup and handle pattern with the handle almost completed.  This could mean that we are headed for .05 plus in the months ahead, perhaps even .10.

It looks like key longer term resistance that needs to be overcome is .028.  Full price bars above this level would be a good sign that LBSR is getting ready for prime time again.

I do not think it is quite ready yet however.  It needs some more work around the current range, perhaps a somewhat sideways consolidation and then an eventual breakout later.

I think I have to give LBSR a penny stock rating of 1 on the penny stocks penny stocks dot come rating system because it has robust volume, a very nice large pattern and a clean price structure.

If the uranium price rise turns into a mania again then the sky is the limit for LBSR.  I will try to get the spot uranium prices into my charting program again so that I can determine what kind of bull market we have with the current uranium price.  It has been a long time since the price of uranium did that moon shot to 160 dollars a pound.

The supply demand relationship for uranium may be one of the strongest in the entire commodity sector and can lead to astounding gains.  The world is hungry for energy and most alternative energy will not be enough to compensate for world energy demands.  And if oil becomes more scarce then it would seem uranium is the next best thing to keep the lights on.

I am somewhat astounded that I have in only the last few days already given two stocks a 1 rating on the penny stocks penny stocks rating system.  Most stocks I cover here will likely not get this rating because of the rarity of great penny stock setups.

I am upgrading Viking Systems Inc to a penny stock rating of 1 because the chart is starting to shape up extremely attractively from my view and there are also some forward looking events that will be extremely relevant to the performance of the stock.

This penny stock appears to have some real potential based not only on the technical analysis of the chart but maybe be one of the few penny stocks out there that actually has a chance at making some real money.  They have a 3D HD tool for surgeons.  You can read their recent corporate PDF presentation on their product.

They are planning the launch of their product in Q4 2010 and are in the final phases of product launch and plan to present it on October 3-7th 2010 at the American College of Surgeons Clinical Congress where over 9000 domestic and international surgeons will be present.

This date looks like it is going to be a very important forward looking event for Viking Systems Inc and I suspect the stock will trade higher right into this date.

You have to like the market here and the potential in terms of sheer size.

I don’t normally talk about fundamentals that much but it seemed prudent to cover at least a little bit of that ground with VKNG because they appear to be moving past development stage into a company that actually sells a high value product.

The technical analysis of Viking Systems Inc looks good right now as well.  Moving above the .28 price point would be a significant milestone for this stock as it would put it above a 3 to 4 month trading range.  Two days ago it has shown a nice big marubozu candlestick on robust volume and engulfed at least a months worth of prices.

Viking Systems Inc has many of the qualities I look for in a superb penny stock.  It has the previous mega run from .005 to 1.00 a year ago showing an enormous sign of strength.

Since then it has consolidated for a very long time essentially sideways with a few big volume spikes in between coupled with big demand price bars.

I think VKNG is getting ready for prime time into October 3 to 7, 2010.  Usually there tends to be a lot of excitement about a product launch and into an important conference.  This is good, but it is different from actually selling 1000 of their products.  This is why in penny stocks penny stocks dot com opinion, VKNG will likely rally into this date range (now 2 months away) and then fizzle out after the excitement dies down.

Viking Systems Inc is also showing a weekly MACD histogram buy signal and the weekly trend appears to be set in the upward motion now.

Above .28 is key for VKNG right now and if achieved could start a slow and steady uptrend channel.

VKNG gets a penny stock rating of  1.

Majic Wheels Corp is a pinksheet penny stock whose sole product from what I can tell is this little toy car that can drive vertically on any wall and also on the ceiling above you.  It seems like an interesting concept for a toy but I am trying to put my ‘little kid hat’ on and wonder if this product could ever hit mainstream and be a hit.  To be honest I am not sure.  It suppose it would be a hit to show off to your friends (isn’t that one of the big reasons why kids love toys so much anyway so that they can show them off to other friends) but maybe after a little while the novelty would wear off.

But that is probably true of most toys anyway after a while.  I guess it depends on how complex the toy is and the levels you can take it to.  This product seems like it is somewhat uni dimensional.  Still it is an interesting concept.

You can see the video of this gravity defying remote control car here.

More interesting is the price chart of this penny stock.  It had a huge move up today almost 83% and the chart seems to have a saucer bottom formation.  Today’s volume was the highest since February 2010.

I like the general shape of the trading pattern since February 2010 as I indicated earlier a saucer bottom formation.

I also like the fact that volume basically dried up to nothing during mid July, it was practically non existent and there were no trades for several days at a time.  The reason I like this is that it tells me the stock had reached its selling exhaustion limit.

The candlestick on Majic Wheels Corp today printed an absolutely beautiful MARUBOZU candlestick which shows that the buyers took control right from the open and closed right at the highs which shows they really controlled the action and trend all day.  Seeing a marubozu candlestick near the bottom of any price chart is always a good thing because it shows a complete transfer of demand after the previous bear market.

I also like the fact that this marubozu price candlestick has tested the previous shelf of swing highs on dramatically higher volume.

So that was the good. What about the bad?

The bad part about this penny stock is that it has very spotty inconsistent volume.  This is never a good thing even in penny stock land. Because of the spotty volume MJWL has the ability to do 100% retracements of an upside move very quickly.

I suspect this penny stock will gap up at the open tomorrow.  It seems to have the possibility of reaching .015 to .02 but again the spotty volume is a definite risk element.

The low volume is the reason why I cannot give this a penny stock rating of 1.  I am guessing here but this penny stock may be able to maintain a robust 2 to 3 day volume pattern into the end of this week.  But again, it has shown the ability to retrace very dramatically despite the promising nature of the chart.

KAT Exploration, Inc. is possibly setting up for a very important breakout above the recent trading range.  I was looking at KATX very critically over recent weeks and wanted to be sure that it would not break below 5.5 cents.  It has not broken this support and is an internal sign of strength.

The overall structure of KAT Exploration, Inc. is looking quite bullish and I am upgrading the penny stock rating on KATX to a 1 (our highest rating level). Why?

Well because KATX has now shown us that it is unwilling to break down below 5.5 cents and it wants to maintain the current strong longer term trading range and is now at the top of the trading range for the THIRD TIME.

Usually a stock or index will succeed on its third attempt at breakout out.  Usually, not always. But I like the recent three day move and I also like today’s intra day reversal.  The candlestick looks great.

It is also nice to see KATX performing so well given the recent overall market weakness and the general sloppy trading and weakness in the gold price.  This is a very good sign.

KAT Exploration, Inc meets most of the criteria I look for in a superb penny stock trading setup.  It reminds me of the setup that Sarissa Resources had over a year ago.

I like the fact that KATX has a lot of SIDEWAYS CAUSE and has not broken down.  KATX is a great example of the type of penny stock we like to identify here!  If you ever see a penny stock with a similar setup to this one please do tell us about it so we can share it with our readers!

If KATX is able to hold and maintain a full price candlestick above .092 (possibly next week ?) then it has a clear path to about .17 cents.  There is almost no resistance all the way up to that point and it could be reached in short order.

Certainly a huge gold price breakout would help things along as well, but for now KAT Exploration, Inc seems to be doing quite well on its own too.

According to bloomberg.com KATX currently has a market cap near the 37 million dollar range.  This is a bit of a concern as it become increasingly rare to see ANY penny stock trade above a 100 million dollar market cap.

Assuming KATX is able to successfully trade to the .17 range, then the next level of resistance is the .45 range. 

For KATX to get to .45 range it is going to have to once again form another sideways base of many months duration.

If things get wild enough in the gold market and the gold price is able to get a super spike going then I think it could be reasonable to see KATX eventually reach the above mentioned targets.  A lot of the next moves do depend on the gold price in my opinion!

You might notice that I have not even mentioned any fundamentals about this penny stock.  The only thing I need to know is that it is a gold stock and that the gold market so far is still in  bullish stance.  The chart itself right now is speaking enough to me that it is all I really need to know for now.

The strength of KAT Exploration stock in the last few days despite overall market weakness is a great example of how many times you will see penny stocks trade completely independent of other market indices.  It is almost unbelievable how they do it.  But in a certain sense they become safe havens to the rest of the market.  But for this to happen the stock must have some very strong hands, a very good story and some committed shareholders.

KAT Exploration, Inc the gold mining penny stock that has been range bound for quote some time now today had what I consider to be a possible key reversal for the stock near the .06 level.

KATX has been range bound for a while and what I am so far please to see is the the stock has NOT violated the .05 level on the downside.  This is very important and a key consideration for this penny stock in my opinion.

Why?

Because breaking down below .05 would show that sellers have enough strength to break the recent trading range and destroy the changes of a continuation uptrend.

Today was a key reversal in terms of the daily candlestick and could be a sign that KATX wants now to trade back to the top of the recent range which would be the .09 level.  That is the most important near term consideration for this penny stock.  If it can get to .09 again then it may have a chance for a successful breakout above the .09 level because usually stocks succeed on their breakout attempts with the third try.

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Viking Systems, Inc. was just mentioned to me on a stock message board and I casually checked it out and a few alarm bells went off in my head.

Occasionally I run into penny stocks that others mention just at random.  I casually take a look and most of the time they don’t get me that interested, but on a rare occasion they jump out at me.  Viking Systems, Inc. fits that description perfectly.

VKNG trades on the OTC BB and has a small trading float.  The stock also had a HUGE run in November of 2009 from a price point of .004 to 1 DOLLAR.  That is a price percentage gain of 25,000% or a 250 bagger. Unbelievable.

Recently VKNG made a huge 100% move with a nice large power candlestick almost resembling a MARIBUZU candlestick which shows that a possible new strong uptrend may begin.

It is consolidating right now and IF VKNG wants to trade higher from here then this week it really ought to hold .25 cents.  If it breaks below .25 this week then it may not be able to get a continuation run going.  But as long as it can bounce around between .25 and the recent highs I think VKNG may have a shot at another run higher soon.

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There may be a lot to like about Wanderport Corp. WDRP trades on the pinksheets and according to pinksheets.com:

WanderPort Corporation is a publicly traded company specializing in the development, marketing and distribution of Eco-Friendly Technology and solutions. The company’s main focus is the preservation of clean fresh water as well as the reduction and elimination of fossil fuel uses. WanderPort owns the global exclusive manufacturing and distribution rights to an Eco-Friendly Pulsar Tankless Water Heater Solution.

A lot of penny stocks these days seem to like the green energy sector.  So what does the chart say?

The chart of WDRP caught my eye because it has a roughly 2 year base and has had decent volume in the the last few months.  Liquidity does not seem to be too much of a problem with it right now.

In addition Wanderport Corp. is currently trading above its 50 day moving average, a good sign and also above its 200 day moving average, another good sign.  A golden cross occurred (50 day moving average crossing above 200 day moving average) near March 10th, 2010 and tells me that the bulls seem to have a shot at pushing this one higher.

The most recent daily candlestick on WDRP looks like a hanging man candlestick and could be a sign of another decline this week.  But if it can ignore that candlestick and move higher that would be quite a bullish event in my opinion.

Also the overall chart has a general tendency towards a large cup and handle pattern.  This stock could have measurement implications towards 6.5 cents.  This is only a rough estimation at this point.

The chart is also showing a general symmetrical triangle formation that is coiling up for a big move.

The volume contraction within the large triangle is consistent with this pattern and if a breakout does occur, it will be important to see a dramatic increase in volume out of this pattern.

The penny stock rating for this stock is 2.

From now on whenever I talk about a specific penny stock I will make a habit of giving it a specific rating.  These ratings are not scientific or system generated.  They are ratings based on my own personal judgment and criteria I have learned to use over the years.

Of course it goes without saying that just because I give a penny stock a certain rating does not mean it will perform exactly as the rating suggests.  The exact opposite may occur.  Again, this is my own personal judgment and I have been wrong plenty of times.

So why use penny stock ratings ?

I just think it helps me to quantify what I am looking at and helps as a point of reference if I ever want to check back from a historical context to see if I was correct or not.

The extreme swings and variability of penny stocks may make this ratings system somewhat irrelevant, but I am going to give it a shot anyway.

The ratings system will be from 1 to 5.

1. A rating of 1 means that the penny stock has most if not all the important factors I like to see in a penny stock that lead to a good future price move.  This is going to be an extremely rare rating because it means that we are dealing with an very good penny stock setup with good to very good probability.  Very good and highly probably penny stock setups are in my opinion quite rare.
2. This is second best.  The setup is good, but is lacking in some area that just does not make it to the top of the list. It may be one or several criteria that keep this penny stock from making it to the top of the list.
3. This is an average rating and right in the middle.  It means that my opinion of it is neutral and I don’t expect a decent move soon or even at all.  It might happen but it probably will not.  A 3 rating means indecision.
4. This is a ‘bad’ penny stock.  I don’t expect any good move soon or in the near future and I expect it will probably continue in a downtrend or be sloppy poor trading action.
5. This is the worst penny stock and is very questionable.  It probably has very poor liquidity and a very poor chart that should be avoided at all costs.

So there you have it.  The penny stocks penny stocks dot com rating system.  There may exist a certain contrarian element in this rating system as well because sometimes I have qualified certain penny stocks as having very bad looking chart, only to see them take off and turn into a super running penny stocks.

So again, this is my judgment and opinion only.  Another pair of eyes may see something entirely different and of course opinions are always welcome here.

I love penny stocks.  But it seems for whatever reason I have completely neglected this group of stocks over the past several months.  I have not completely neglected penny stocks in the sense that I have been dabbling in the more mainstream penny stocks between $1 and $5 on both the Nasdaq Composite index and the New York Stock exchange.

Given the huge market surge since March 6, of 2009 these days it is becoming harder and harder to find 1$ to $5 nasdaq or nyse stocks that are ripe for a nice move.

Of course the recent exception to the rule was ABK Ambac Financial Group, Inc. Ambac had an absolutely outstanding rally from the depths of the .60 cent range all the way up to a high of $3 and change that occurred through multiple gaps up.

The nice thing about ABK is that you have a very liquid stock and generally very high volatility.  The downside is that you have the potential for this stock to go bankrupt at any time.  I have been in stocks before that had a ‘possible bankruptcy’ press release and let me tell you it is not fun at all.  So ABK is probably best suited for day trading at this point to avoid one of those end of day or pre market PRs.

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