KATX KAT Exploration Inc Still in a Constructive Uptrend

KAT Exploration, Inc which we first starting talking about here at penny stocks penny stocks dot com way back on March 9th, 2010 when it was at about .05 cents has since had a tremendous run up to an intraday high of .252 cents or a 404% move.

KAT Exploration, Inc is probably one of the most amazing penny mining stock runs we have ever seen.  It is bigger than the run in Sarissa Resources or Goldspring Inc.

The question now is whether or not KATX  can get another run going from its recent long consolidation which has essentially been sideways.

The stock appears to be trading in another massive falling wedge formation that looks somewhat similar to the two previous falling wedges that got KATX to where it is trading at right now.

I cannot predict whether or not KATX has enough fuel to blast higher out of this wedge, but I would say that it is imperative that KATX hold .12 support otherwise the whole mini bull market run may be over.  It simply must hold .12 support, no ifs and or buts.  That is simply how this business works.  You allow penny stocks some breathing room, but if they violate key levels then in our opinion one must run for the exits fast.

At this time I cannot say whether or not a gold price super spike higher in September time frame will help KATX. It may.  The seasonal month of September is an extremely strong month for mining stocks and the gold price.  It will be very interesting to see if KATX can break above this falling wedge formation and get a strong bid again.

I would be completely remiss if I did not mention the June 14th, 2010 price down candlestick that was on almost 20 million shares.  This huge down spike in both price weakness and volume is a potential cause for concern and should not be ignored in our opinion.  Relative to the price rise up to .25 cents, the down spike on 6/14 was on much greater volume and could be a warning that the demand supply relationship of this penny mining stock has changed.

In our view it makes the .12 area all the much more important as a KEY LEVEL that must hold in the days and weeks ahead.