mining penny stock - tag category postings

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.

SRSR Sarissa Resources trades on the pinksheets and in my honest opinion is one of the most bullish price charts for a penny stock that I have seen in a long time.

This update and posting is extremely timely as well.  I have spent a lot of time studying the stock price chart of SRSR on all 3 major time frames and have come to the conclusion that SRSR is poised for a very big move, perhaps over the course of the next 10 to 15 trading days.

SRSR currently trades just over a penny at .0135 as of this writing and volume is starting to come into it heavy in recent days making a third approach of the very significant .015 resistance line.

I believe on this 3rd attempt that SRSR will be successful in breaking the .015 level.  It is a stock traders secret that ‘usually’ on the third attempt of hitting a trendline or resistance line, a stock is successful in overcoming it.

My price target on SRSR is in the range of .10 to .40 cents, possible higher. The time it will take to get there is unknown at this time. But SRSR has a history of sprinting to a big price target and then consolidating for a long time.

SRSR is a beautiful combination of a penny stock that has a superb fundamental story and an equally beautiful technical story.

The technical story (always my favorite preferred type of story) is that SRSR has built a sideways consolidation of 4+ months long into a symmetrical triangle that has held its ground when most other penny stocks do full 100% retracements. When a penny stock holds support after its first major spike off a bear market low, it gets my attention big time.

Anyway, here is a quick chart I drew up that shows a little bit of what is developing with SRSR. It has a huge inverse head and shoulders chart with each shoulder approximately equal in length. This is an indication to me that SRSR is just about ready for prime time.

As far as the fundamental story, there is a very excellent summary of the fundamental story right here in pdf format. I highly recommend that you read it.

There are a bunch of other technical factors that make this a great play.

SRSR should be on high alert right now.

Watch for a break of .015 for the wheels to really set in motion.