KATX KAT Exploration Inc May Start New Uptrend Again Soon

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.

One day’s action certainly does not guarantee an upside move will happen going forward.  I am just saying that preliminary indications are that this could be the case.  Patience and diligence is necessary to observe how KAT Exploration Inc behaves in the days ahead.

The overall structure of this penny stock chart is quite constructive because it is exhibiting a solid ‘stair step’ pattern and so far at least continuing to hold key support levels.

I am giving KATX a penny stock rating of 2 for now but I will probably upgrade it to a 1 rating if KATX can start showing a sign of strength higher.

If however KATX fails in getting an upside move going soon, then the technical picture and rating would drop considerably.